Financial Review: Nevro (NYSE:NVRO) & Nemaura Medical (NASDAQ:NMRD)

Nevro (NYSE:NVRO) and Nemaura Medical (NASDAQ:NMRD) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

95.5% of Nevro shares are owned by institutional investors. Comparatively, 4.4% of Nemaura Medical shares are owned by institutional investors. 3.2% of Nevro shares are owned by insiders. Comparatively, 40.4% of Nemaura Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Nevro and Nemaura Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$408.52 million	0.55	-$92.21 million	($3.05)	-1.92
Nemaura Medical	$3,017.00	0.00	-$14.14 million	($0.39)	N/A

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

Risk and Volatility

Nevro has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Nemaura Medical has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	2	9	1	0	1.92
Nemaura Medical	0	0	0	0	0.00

Nevro currently has a consensus target price of $5.36, indicating a potential downside of 8.29%. Given Nemaura Medical’s higher probable upside, analysts plainly believe Nemaura Medical is more favorable than Nevro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nevro	-16.54%	-23.52%	-10.83%
Nemaura Medical	N/A	N/A	N/A

Summary

Nemaura Medical beats Nevro on 8 of the 13 factors compared between the two stocks.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.

About Nemaura Medical

Nemaura Medical Inc., a medical technology company, manufactures continuous glucose monitoring system in the United States. It offers sugarBEAT, a non-invasive continuous glucose monitoring device for use by persons with Type I and Type II diabetes, as well as screen pre-diabetic patients. The company also offers proBEAT, a wellness guidance notes, that provide prompts and educate users on factors affecting blood sugar profiles, as well as conducts diabetes prevention and reversal programs. Nemaura Medical Inc. was founded in 2009 and is based in New York, New York.