Neuronetics (STIM) & Its Competitors Head to Head Comparison

Neuronetics (NASDAQ:STIM) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its competitors? We will compare Neuronetics to similar businesses based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Profitability

This table compares Neuronetics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-19.62%	-125.11%	-22.15%
Neuronetics Competitors	-278.38%	-150.31%	-21.96%

Insider and Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 8.4% of Neuronetics shares are owned by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Neuronetics and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Neuronetics	$149.16 million	-$39.00 million	-4.68
Neuronetics Competitors	$1.90 billion	$137.77 million	10.83

Neuronetics’ competitors have higher revenue and earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Neuronetics and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	4	0	2.60
Neuronetics Competitors	4261	10489	18226	825	2.46

Neuronetics presently has a consensus price target of $4.67, indicating a potential upside of 126.54%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 23.18%. Given Neuronetics’ stronger consensus rating and higher probable upside, research analysts clearly believe Neuronetics is more favorable than its competitors.

Risk and Volatility

Neuronetics has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Neuronetics’ competitors have a beta of 2.55, suggesting that their average stock price is 155% more volatile than the S&P 500.

Summary

Neuronetics competitors beat Neuronetics on 7 of the 13 factors compared.

Neuronetics Company Profile

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.