Comparing Nevro (NVRO) & Utah Medical Products (NASDAQ:UTMD)

Utah Medical Products (NASDAQ: UTMD) and Nevro (NYSE:NVRO) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Utah Medical Products and Nevro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Utah Medical Products 34.31% 18.31% 16.40%
Nevro -14.09% -17.27% -9.88%

Analyst Recommendations

This is a breakdown of recent recommendations for Utah Medical Products and Nevro, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Utah Medical Products 0 0 0 0 N/A
Nevro 0 1 6 0 2.86

Nevro has a consensus target price of $99.71, suggesting a potential upside of 26.93%. Given Nevro’s higher possible upside, analysts plainly believe Nevro is more favorable than Utah Medical Products.

Dividends

Utah Medical Products pays an annual dividend of $1.08 per share and has a dividend yield of 1.3%. Nevro does not pay a dividend. Utah Medical Products pays out 29.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Utah Medical Products and Nevro’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Utah Medical Products $39.30 million 7.86 $12.12 million $3.68 22.55
Nevro $228.50 million 10.19 -$31.77 million ($1.45) -54.18

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

Insider and Institutional Ownership

66.7% of Utah Medical Products shares are held by institutional investors. 9.1% of Utah Medical Products shares are held by company insiders. Comparatively, 12.1% of Nevro shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Utah Medical Products has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Nevro has a beta of -0.83, suggesting that its stock price is 183% less volatile than the S&P 500.

Summary

Utah Medical Products beats Nevro on 9 of the 15 factors compared between the two stocks.

About Utah Medical Products

Utah Medical Products, Inc. (UTMD) is engaged in the business of producing medical devices that are disposable and for hospital use. The Company’s product categories include labor and delivery/obstetrics, including fetal monitoring accessories, Vacuum-Assisted Delivery Systems (VAD), and other labor and delivery tools; neonatal intensive care, including DISPOSA-HOOD, DELTRAN PLUS and GESCO; gynecology/urology/electrosurgery, including LETZ System, FINESSE+ Generator, EPITOME, PATHFINDER PLUS, HOLMIUM LASER FIBRES, LIBERTY System, ENDOCURETTE, TVUS/HSG-Cath and LUMIN, and blood pressure monitoring, including DELTRAN Disposable Pressure Transducer (DPT), and pressure monitoring accessories, components and other molded parts. UTMD markets a range of medical devices used in critical care areas, especially the neonatal intensive care unit, the labor and delivery department and the women’s health center in hospitals, as well as products sold to outpatient clinics and physician’s offices.

About Nevro

Nevro Corp. is a global medical device company. The Company focuses on providing products that improve the quality of life of patients suffering from chronic pain. The Company has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its HF10 therapy is designed to deliver neuromodulation solutions for treating chronic pain. HF10 therapy enables patients to achieve sustained pain relief without paresthesia, thus enabling its patients to avoid the uncomfortable shocking or jolting sensations commonly associated with paresthesia. HF10 therapy relies on consistent anatomical lead placement. As of December 31, 2016, it was investigating the use of HF10 therapy to address additional indications, such as chronic upper limb and neck pain, painful neuropathies and non-surgical refractory back pain. The Senza system is approved to create electrical impulses from 2 hertz (Hz) to 10,000 Hz.

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