Pulse Biosciences (NASDAQ:PLSE – Get Free Report) and Neuronetics (NASDAQ:STIM – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Valuation and Earnings
This table compares Pulse Biosciences and Neuronetics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pulse Biosciences | -$9,000.00 | -28,915.58 | -$58.51 million | ($1.22) | -3.89 |
| Neuronetics | $65.21 million | 0.68 | -$37.16 million | ($1.13) | -1.35 |
Neuronetics has higher revenue and earnings than Pulse Biosciences. Pulse Biosciences is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Pulse Biosciences | N/A | -337.81% | -58.52% |
| Neuronetics | -46.16% | -58.58% | -28.46% |
Analyst Recommendations
This is a breakdown of current recommendations for Pulse Biosciences and Neuronetics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pulse Biosciences | 0 | 1 | 0 | 0 | 2.00 |
| Neuronetics | 0 | 0 | 2 | 0 | 3.00 |
Neuronetics has a consensus price target of $9.50, suggesting a potential upside of 520.92%. Given Neuronetics’ stronger consensus rating and higher probable upside, analysts plainly believe Neuronetics is more favorable than Pulse Biosciences.
Volatility and Risk
Pulse Biosciences has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500.
Institutional & Insider Ownership
6.6% of Pulse Biosciences shares are held by institutional investors. Comparatively, 62.2% of Neuronetics shares are held by institutional investors. 64.8% of Pulse Biosciences shares are held by company insiders. Comparatively, 7.3% of Neuronetics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Neuronetics beats Pulse Biosciences on 12 of the 14 factors compared between the two stocks.
About Pulse Biosciences
Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. It offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. The company was incorporated in 2014 and is headquartered in Hayward, California.
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. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
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