Contrasting AtriCure (ATRC) and Nuvectra (NVTR)

AtriCure (NASDAQ: ATRC) and Nuvectra (NASDAQ:NVTR) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Valuation and Earnings

This table compares AtriCure and Nuvectra’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AtriCure $174.72 million 4.14 -$26.89 million ($0.83) -24.84
Nuvectra $31.84 million 5.79 -$44.60 million ($4.22) -3.09

AtriCure has higher revenue and earnings than Nuvectra. AtriCure is trading at a lower price-to-earnings ratio than Nuvectra, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

86.2% of AtriCure shares are owned by institutional investors. Comparatively, 47.0% of Nuvectra shares are owned by institutional investors. 10.0% of AtriCure shares are owned by company insiders. Comparatively, 4.6% of Nuvectra shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

AtriCure has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Nuvectra has a beta of -2.28, indicating that its stock price is 328% less volatile than the S&P 500.

Profitability

This table compares AtriCure and Nuvectra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AtriCure -15.39% -16.74% -10.04%
Nuvectra -140.09% -72.64% -46.96%

Analyst Ratings

This is a breakdown of current ratings and target prices for AtriCure and Nuvectra, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 0 5 0 3.00
Nuvectra 0 0 4 0 3.00

AtriCure presently has a consensus price target of $24.80, indicating a potential upside of 20.27%. Nuvectra has a consensus price target of $12.00, indicating a potential downside of 7.90%. Given AtriCure’s higher possible upside, equities research analysts plainly believe AtriCure is more favorable than Nuvectra.

Summary

AtriCure beats Nuvectra on 11 of the 13 factors compared between the two stocks.

AtriCure Company Profile

AtriCure, Inc. provides atrial fibrillation solutions to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy; and EPi-Sense guided coagulation system used for the temporary cardiac signal sensing and recording during surgery. It also provides SUBTLE cannula, an access device and conduit for the ablation device and endoscope to enable a closed chest endoscopic approach; multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable physicians to create an expanded cardiac ablation lesion set. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. AtriCure sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.

Nuvectra Company Profile

Nuvectra Corporation, a neuromodulation medical device company, develops and commercializes its neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets in Europe. The company offers Algovita spinal cord stimulation system that is used for the treatment of chronic pain of the trunk and limbs. It also provides neural interface systems, including microelectrode arrays, probes, and electrode instrumentation and accessories; and develops Virtis, a sacral nerve stimulation system for the treatment of chronic urinary retention and the symptoms of overactive bladder. The company was founded in 2008 and is headquartered in Plano, Texas.

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