Neuronetics (STIM) versus NuVasive (NUVA) Financial Review

Neuronetics (NASDAQ:STIM) and NuVasive (NASDAQ:NUVA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

69.2% of Neuronetics shares are owned by institutional investors. 1.2% of NuVasive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Neuronetics and NuVasive, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neuronetics 0 0 5 0 3.00
NuVasive 2 7 8 0 2.35

Neuronetics currently has a consensus target price of $36.33, suggesting a potential upside of 82.67%. NuVasive has a consensus target price of $67.63, suggesting a potential upside of 16.88%. Given Neuronetics’ stronger consensus rating and higher probable upside, analysts clearly believe Neuronetics is more favorable than NuVasive.


This table compares Neuronetics and NuVasive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neuronetics N/A N/A N/A
NuVasive 2.24% 13.87% 6.55%

Valuation and Earnings

This table compares Neuronetics and NuVasive’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neuronetics $40.43 million 8.65 -$16.05 million N/A N/A
NuVasive $1.03 billion 2.89 $83.00 million $1.91 30.29

NuVasive has higher revenue and earnings than Neuronetics.


NuVasive beats Neuronetics on 7 of the 11 factors compared between the two stocks.

Neuronetics Company Profile

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders. It offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment for adult patients with major depressive disorder. The company's NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed MRI-strength magnetic field, which induces electrical currents designed to stimulate specific areas of the brain associated with mood. Neuronetics, Inc. was incorporated in 2003 and is headquartered in Malvern, Pennsylvania.

NuVasive Company Profile

NuVasive, Inc., a medical device company, develops and markets minimally-disruptive surgical products and procedurally-integrated solutions for spine surgery. Its products focus on applications for spine fusion surgery, including ancillary products and services used to aid in the surgical procedure. The company's principal product is Maximum Access Surgery, a minimally-disruptive surgical platform, which includes its software-driven nerve detection and avoidance systems, and intraoperative monitoring (IOM) services and support; MaXcess, an integrated split-blade retractor system; and various specialized implants and biologics. Its spine surgery product line offerings comprise products for the thoracolumbar and the cervical spine, which are primarily used to enable surgeons to access the spine and to perform restorative and fusion procedures in a minimally-disruptive fashion. Its biologics products include Osteocel Plus and Pro, a cellular bone matrix; Formagraft, a collagen-based synthetic bone substitute; AttraX, a synthetic bone graft material; and Propel DBM, a moldable demineralized bone matrix putty, which are used for spinal fusion or bone healing process. The company's IOM services are used for onsite and remote monitoring of the neurological systems of patients undergoing spinal and brain-related surgeries. It also provides implants used for interbody disc height restoration; and fixation products, including pedicle screws, rods, and plates. In addition, the company offers Integrated Global Alignment platform for assessing, preserving, and restoring spinal alignment; MAGEC-early onset scoliosis, a spinal bracing and distraction system; and PRECICE, a limb lengthening system. NuVasive, Inc. sells its products to patients, surgeons, hospitals, and insurers through independent sales agents, directly-employed sales personnel, and distributors in the United States and internationally. The company was founded in 1997 and is headquartered in San Diego, California.

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