Abiomed (NASDAQ:ABMD) vs. Nevro (NYSE:NVRO) Critical Comparison

Abiomed (NASDAQ:ABMDGet Rating) and Nevro (NYSE:NVROGet Rating) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

92.0% of Abiomed shares are owned by institutional investors. 3.0% of Abiomed shares are owned by insiders. Comparatively, 2.8% of Nevro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Abiomed and Nevro’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abiomed $1.03 billion 11.44 $136.51 million $2.96 87.58
Nevro $386.90 million 3.96 -$131.36 million ($3.90) -11.14

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

Profitability

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

Net Margins Return on Equity Return on Assets
Abiomed 13.23% 14.47% 13.02%
Nevro -35.25% -38.02% -20.29%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Abiomed and Nevro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abiomed 1 2 1 0 2.00
Nevro 2 8 4 0 2.14

Abiomed presently has a consensus target price of $335.00, indicating a potential upside of 29.22%. Nevro has a consensus target price of $86.91, indicating a potential upside of 100.02%. Given Nevro’s stronger consensus rating and higher probable upside, analysts clearly believe Nevro is more favorable than Abiomed.

Volatility & Risk

Abiomed has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Nevro has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

Abiomed beats Nevro on 11 of the 14 factors compared between the two stocks.

About Abiomed (Get Rating)

Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides a continuum of care to heart failure patients. The company offers Impella 2.5, a percutaneous micro heart pump with integrated motor and sensors; and Impella CP, a device for use by interventional cardiologists to support patients in the cath lab, as well as by cardiac surgeons in the heart surgery suite. It also provides Impella 5.0, Impella LD, and Impella 5.5, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; Impella RP, a percutaneous catheter-based axial flow pump; Impella SmartAssist platform that includes optical sensor technology for improved pump positioning and the use of algorithms that enable improved native heart assessment during the weaning process; Impella Connect, a cloud-based technology that enables secure and remote viewing of the Automated Impella Controller for physicians and hospital staffs; and OXY-1 System, a portable external respiratory assistance device. In addition, the company is developing Impella ECP, a pump for blood flow of greater than three liters per minute; Impella XR Sheath, a sheath that expands and recoils allowing small bore access and closure with Impella heart pumps; and Impella BTR, a percutaneous micro heart pump with integrated motors and sensors. Abiomed, Inc. sells its products through direct sales and clinical support personnel in the United States, Japan, Europe, Canada, Latin America, the Asia-Pacific, and the Middle East. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.

About Nevro (Get Rating)

Nevro Corp., a medical device company, provides products for patients suffering from chronic pain in the United States and internationally. The company develops and commercializes the Senza spinal cord stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain, as well as Senza II and Senza Omnia systems. It also provides 10 kHz Therapy, which delivers neuromodulation solutions for treating chronic pain based on available clinical evidence. The company sells its products through its direct sales force, and a network of sales agents and independent distributors. Nevro Corp. was incorporated in 2006 and is headquartered in Redwood City, California.

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