Neuronetics (NASDAQ:STIM) and Hypertension Diagnostics (OTCMKTS:HDII) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Analyst Recommendations
This is a breakdown of current recommendations for Neuronetics and Hypertension Diagnostics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 0 | 0 | 2 | 0 | 3.00 |
| Hypertension Diagnostics | 0 | 0 | 0 | 0 | N/A |
Neuronetics presently has a consensus price target of $19.50, suggesting a potential upside of 487.35%. Given Neuronetics’ higher probable upside, research analysts clearly believe Neuronetics is more favorable than Hypertension Diagnostics.
Volatility & Risk
Neuronetics has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Hypertension Diagnostics has a beta of -5.58, suggesting that its share price is 658% less volatile than the S&P 500.
Profitability
This table compares Neuronetics and Hypertension Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -45.35% | -44.10% | -24.82% |
| Hypertension Diagnostics | N/A | N/A | N/A |
Insider and Institutional Ownership
79.1% of Neuronetics shares are held by institutional investors. Comparatively, 0.0% of Hypertension Diagnostics shares are held by institutional investors. 12.0% of Neuronetics shares are held by company insiders. Comparatively, 40.0% of Hypertension Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Neuronetics and Hypertension Diagnostics’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $52.78 million | 1.17 | -$24.10 million | ($2.69) | -1.23 |
| Hypertension Diagnostics | $3.68 million | 0.22 | N/A | N/A | N/A |
Hypertension Diagnostics has lower revenue, but higher earnings than Neuronetics.
Summary
Neuronetics beats Hypertension Diagnostics on 6 of the 10 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 in the United States, Japan, 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 psychiatrist customers. Neuronetics, Inc. was founded in 2003 and is headquartered in Malvern, Pennsylvania.
Hypertension Diagnostics Company Profile
Hypertension Diagnostics, Inc. designs, develops, manufactures, and markets proprietary noninvasive medical devices that detect subtle changes in the elasticity of arteries in the United States and internationally. It offers CVProfilor, which allows a physician to non-invasively assess the elasticity of small and large arteries, of which small artery elasticity is the earliest and sensitive marker of cardiovascular disease. The company offers CVProfilor DO-2020, which provides a patient’s arterial elasticity indices used in the assessment for underlying vascular disease; CVProfilor MD-3000 that offers a sensitive and specific guide to the presence of blood vessel disease; and HD/PulseWave CR-2000 research cardiovascular profiling system, which provides researchers and scientists with a non-invasive means to assess arterial elasticity in support of human research in various areas. Its products collect 30 seconds of blood pressure waveform data, perform an analysis of the digitized blood pressure waveforms, and generate a CVProfile report that contains information on blood pressure, heart rate, pulse pressure, body surface area, body mass index, and C1-large and C2-small artery elasticity indices. The company sells its products to primary care physicians, cardiologists, health care professionals, trained medical personnel, research investigators at academic medical research centers, government institutes, cardiovascular specialists, and pharmaceutical firms. It markets its products through a representative organization in the United States. Hypertension Diagnostics, Inc. was founded in 1988 and is based in Minnetonka, Minnesota.
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