Analyzing Nevro (NYSE:NVRO) & H-CYTE (OTCMKTS:HCYTD)

Nevro (NYSE:NVRO) and H-CYTE (OTCMKTS:HCYTD) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Risk and Volatility

Nevro has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, H-CYTE has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nevro and H-CYTE”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$408.52 million	0.55	-$92.21 million	($3.05)	-1.92
H-CYTE	$1.61 million	0.32	-$4.80 million	N/A	N/A

H-CYTE has lower revenue, but higher earnings than Nevro.

Institutional & Insider Ownership

95.5% of Nevro shares are held by institutional investors. 3.2% of Nevro shares are held by insiders. Comparatively, 5.2% of H-CYTE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nevro and H-CYTE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	2	9	1	0	1.92
H-CYTE	0	0	0	0	0.00

Nevro presently has a consensus target price of $5.36, indicating a potential downside of 8.29%. Given Nevro’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nevro is more favorable than H-CYTE.

Profitability

This table compares Nevro and H-CYTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nevro	-16.54%	-23.52%	-10.83%
H-CYTE	-450.40%	N/A	-777.68%

Summary

Nevro beats H-CYTE on 8 of the 12 factors compared between the two stocks.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.

About H-CYTE

H-CYTE, Inc., a biopharmaceutical company, develops and delivers various treatments for patients with chronic respiratory and pulmonary disorders in the United States. The company develops and implements treatment options in autologous cellular therapy to treat chronic lung disorders. It has a product supply agreement with Rion, LLC to develop and distribute a biologic for chronic obstructive pulmonary disease. The company is headquartered in Tampa, Florida.