Reviewing PAVmed (NASDAQ:PAVM) & NeuroPace (NASDAQ:NPCE)

PAVmed (NASDAQ:PAVM) and NeuroPace (NASDAQ:NPCE) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

19.9% of PAVmed shares are owned by institutional investors. Comparatively, 78.8% of NeuroPace shares are owned by institutional investors. 7.3% of PAVmed shares are owned by insiders. Comparatively, 20.5% of NeuroPace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

PAVmed has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, NeuroPace has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Profitability

This table compares PAVmed and NeuroPace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PAVmed	7,144.80%	N/A	-21.77%
NeuroPace	-29.29%	-168.61%	-25.48%

Earnings and Valuation

This table compares PAVmed and NeuroPace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAVmed	$2.99 million	2.57	$39.79 million	$1.16	0.39
NeuroPace	$79.91 million	3.54	-$27.14 million	($0.84)	-10.19

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

Analyst Ratings

This is a summary of current recommendations and price targets for PAVmed and NeuroPace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAVmed	0	0	1	0	3.00
NeuroPace	0	0	5	0	3.00

PAVmed presently has a consensus target price of $19.00, suggesting a potential upside of 4,124.10%. NeuroPace has a consensus target price of $16.60, suggesting a potential upside of 93.93%. Given PAVmed’s higher probable upside, analysts plainly believe PAVmed is more favorable than NeuroPace.

Summary

PAVmed beats NeuroPace on 7 of the 13 factors compared between the two stocks.

About PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.

About NeuroPace

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.