Critical Survey: enVVeno Medical (NASDAQ:NVNO) versus Profound Medical (NASDAQ:PROF)

enVVeno Medical (NASDAQ:NVNO) and Profound Medical (NASDAQ:PROF) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Volatility and Risk

enVVeno Medical has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Profound Medical has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares enVVeno Medical and Profound Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
enVVeno Medical	N/A	-48.72%	-45.96%
Profound Medical	-349.41%	-85.22%	-64.87%

Earnings & Valuation

This table compares enVVeno Medical and Profound Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
enVVeno Medical	N/A	N/A	-$23.52 million	($1.29)	-1.93
Profound Medical	$8.98 million	24.23	-$28.57 million	($1.34)	-5.41

enVVeno Medical has higher earnings, but lower revenue than Profound Medical. Profound Medical is trading at a lower price-to-earnings ratio than enVVeno Medical, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

34.7% of enVVeno Medical shares are owned by institutional investors. Comparatively, 47.9% of Profound Medical shares are owned by institutional investors. 16.0% of enVVeno Medical shares are owned by company insiders. Comparatively, 1.5% of Profound Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for enVVeno Medical and Profound Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
enVVeno Medical	0	0	0	0	0.00
Profound Medical	0	0	3	1	3.25

Profound Medical has a consensus price target of $13.75, suggesting a potential upside of 89.66%. Given Profound Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Profound Medical is more favorable than enVVeno Medical.

Summary

enVVeno Medical beats Profound Medical on 8 of the 14 factors compared between the two stocks.

About enVVeno Medical

enVVeno Medical Corporation (Nasdaq: NVNO) is an medical device company focused on the development of innovative bioprosthetic (tissue-based) devices to improve the standard of care in the treatment of venous disease. The company’s lead product, the VenoValve®️, is a first-in-class, surgical implant being developed for the treatment of severe deep venous Chronic Venous Insufficiency (CVI). Deep venous CVI occurs when valves inside of the deep veins of the leg become damaged, resulting in insufficient blood being returned to the heart. The malfunctioning vein valves cause blood to flow backwards (reflux) and pool in the lower leg, increasing the pressure within the veins of the leg (venous hypertension). In the most severe cases, CVI can lead to venous ulcers (open skin sores) that become chronic and difficult to heal. The VenoValve is implanted in the femoral vein and works as a replacement venous valve, designed to reduce reflux and venous hypertension, and to restore proper directional blood flow back to the heart. With severe deep venous CVI impacting an estimated 2.4 million people in the U.S., who have no effective treatment options, the VenoValve has received Breakthrough Device Designation from the U.S. Food and Drug Administration, and is currently being evaluated in the SAVVE U.S. clinical trial.

About Profound Medical

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.