Critical Survey: Neuronetics (NASDAQ:STIM) vs. Tenon Medical (NASDAQ:TNON)

Tenon Medical (NASDAQ:TNONGet Free Report) and Neuronetics (NASDAQ:STIMGet Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares Tenon Medical and Neuronetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenon Medical -413.88% -1,785.88% -164.26%
Neuronetics -50.09% -141.24% -32.77%

Earnings & Valuation

This table compares Tenon Medical and Neuronetics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tenon Medical $3.32 million 2.08 -$15.58 million ($27.23) -0.08
Neuronetics $72.71 million 0.66 -$30.19 million ($1.23) -1.28

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

Risk and Volatility

Tenon Medical has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Tenon Medical and Neuronetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenon Medical 0 0 2 0 3.00
Neuronetics 0 1 3 0 2.75

Tenon Medical presently has a consensus target price of $5.50, indicating a potential upside of 150.00%. Neuronetics has a consensus target price of $4.67, indicating a potential upside of 197.24%. Given Neuronetics’ higher probable upside, analysts clearly believe Neuronetics is more favorable than Tenon Medical.

Insider & Institutional Ownership

22.7% of Tenon Medical shares are owned by institutional investors. Comparatively, 53.6% of Neuronetics shares are owned by institutional investors. 4.7% of Tenon Medical shares are owned by insiders. Comparatively, 9.8% of Neuronetics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Neuronetics beats Tenon Medical on 10 of the 14 factors compared between the two stocks.

About Tenon Medical

(Get Free Report)

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

About Neuronetics

(Get Free Report)

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

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