Critical Review: ClearPoint Neuro (NASDAQ:CLPT) versus PROCEPT BioRobotics (NASDAQ:PRCT)

PROCEPT BioRobotics (NASDAQ:PRCTGet Rating) and ClearPoint Neuro (NASDAQ:CLPTGet Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

66.4% of PROCEPT BioRobotics shares are owned by institutional investors. Comparatively, 15.1% of ClearPoint Neuro shares are owned by institutional investors. 40.8% of PROCEPT BioRobotics shares are owned by company insiders. Comparatively, 4.9% of ClearPoint Neuro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for PROCEPT BioRobotics and ClearPoint Neuro, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PROCEPT BioRobotics 0 2 6 0 2.75
ClearPoint Neuro 0 0 1 0 3.00

PROCEPT BioRobotics currently has a consensus price target of $44.75, indicating a potential upside of 15.93%. ClearPoint Neuro has a consensus price target of $15.00, indicating a potential upside of 50.30%. Given ClearPoint Neuro’s stronger consensus rating and higher possible upside, analysts clearly believe ClearPoint Neuro is more favorable than PROCEPT BioRobotics.

Profitability

This table compares PROCEPT BioRobotics and ClearPoint Neuro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PROCEPT BioRobotics -126.00% -31.57% -23.92%
ClearPoint Neuro -82.40% -36.56% -26.41%

Earnings & Valuation

This table compares PROCEPT BioRobotics and ClearPoint Neuro’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PROCEPT BioRobotics $34.47 million 50.08 -$59.85 million ($1.75) -22.06
ClearPoint Neuro $16.30 million 15.03 -$14.41 million ($0.69) -14.46

ClearPoint Neuro has lower revenue, but higher earnings than PROCEPT BioRobotics. PROCEPT BioRobotics is trading at a lower price-to-earnings ratio than ClearPoint Neuro, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PROCEPT BioRobotics has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, ClearPoint Neuro has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

About PROCEPT BioRobotics

(Get Rating)

PROCEPT BioRobotics Corporation, a surgical robotics company, develops transformative solutions in urology. It develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally-invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). The company also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. As of December 31, 2021, it had an install base of 130 AquaBeam Robotic Systems worldwide comprising 78 in the United States. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in Redwood City, California.

About ClearPoint Neuro

(Get Rating)

Clearpoint Neuro, Inc. engages in the development and commercialization of platforms for performing minimally invasive surgical procedures in the brain and heart. The firm conducts its procedures under direct, intra-procedural magnetic resonance imaging guidance. Its product platform consists of the ClearPoint system and ClearTrace system. The company was founded by Paul A. Bottomley on March 12, 1998 and is headquartered in Solana Beach, CA.

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