Head to Head Review: Neuronetics (NASDAQ:STIM) vs. Retractable Technologies (NYSE:RVP)

Neuronetics (NASDAQ:STIM) and Retractable Technologies (NYSE:RVP) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Earnings & Valuation

This table compares Neuronetics and Retractable Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$71.35 million	0.46	-$30.19 million	($1.12)	-0.97
Retractable Technologies	$43.60 million	0.50	-$7.01 million	($0.61)	-1.19

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

Profitability

This table compares Neuronetics and Retractable Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-45.06%	-109.00%	-31.72%
Retractable Technologies	-46.72%	-18.67%	-10.24%

Institutional & Insider Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 7.6% of Retractable Technologies shares are held by institutional investors. 9.8% of Neuronetics shares are held by insiders. Comparatively, 55.0% of Retractable Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Neuronetics has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, Retractable Technologies has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Neuronetics and Retractable Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	0	1	3	0	2.75
Retractable Technologies	0	0	0	0	N/A

Neuronetics currently has a consensus target price of $4.67, suggesting a potential upside of 328.13%. Given Neuronetics’ higher possible upside, analysts plainly believe Neuronetics is more favorable than Retractable Technologies.

Summary

Neuronetics beats Retractable Technologies on 7 of the 13 factors compared between the two stocks.

About Neuronetics

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States 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 psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.