Analyzing Adynxx (OTCMKTS:ADYX) and Nevro (NYSE:NVRO)

Adynxx (OTCMKTS:ADYX) and Nevro (NYSE:NVRO) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Volatility & Risk

Adynxx has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500. Comparatively, Nevro has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Adynxx and Nevro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adynxx	0	0	0	0	0.00
Nevro	2	11	1	0	1.93

Nevro has a consensus target price of $6.43, indicating a potential upside of 12.42%. Given Nevro’s stronger consensus rating and higher probable upside, analysts plainly believe Nevro is more favorable than Adynxx.

Insider & Institutional Ownership

95.5% of Nevro shares are held by institutional investors. 17.4% of Adynxx shares are held by company insiders. Comparatively, 3.2% of Nevro shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Adynxx and Nevro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adynxx	N/A	N/A	N/A	N/A	N/A
Nevro	$425.17 million	0.50	-$92.21 million	($1.89)	-3.02

Adynxx has higher earnings, but lower revenue than Nevro.

Profitability

This table compares Adynxx and Nevro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adynxx	N/A	N/A	N/A
Nevro	-16.54%	-23.52%	-10.83%

About Adynxx

Adynxx, Inc., a clinical stage biopharmaceutical company, focuses on the development and marketing of transcription factor decoy technologies for the treatment of pain and inflammatory diseases. It is involved in the development of AYX platform of transcription factor decoys, including brivoligide, which is in Phase II clinical development for the reduction of postoperative pain; and AYX2, a pre-clinical candidate intended for the treatment of focal chronic pain. The company was founded in 2007 and is headquartered in San Francisco, California.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.