Nuwellis (NASDAQ:NUWE) & NeuroPace (NASDAQ:NPCE) Head to Head Analysis

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

Analyst Recommendations

This is a breakdown of recent recommendations for NeuroPace and Nuwellis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	0	0	0	0	0.00
Nuwellis	0	0	1	0	3.00

Insider & Institutional Ownership

78.8% of NeuroPace shares are held by institutional investors. Comparatively, 3.1% of Nuwellis shares are held by institutional investors. 20.5% of NeuroPace shares are held by company insiders. Comparatively, 20.1% of Nuwellis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NeuroPace has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Nuwellis has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-29.29%	-168.61%	-25.48%
Nuwellis	-176.45%	-1,424.01%	-187.69%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroPace	$79.91 million	4.08	-$27.14 million	($0.84)	-11.74
Nuwellis	$8.74 million	0.43	-$11.16 million	($35.36)	-0.12

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

Summary

NeuroPace beats Nuwellis on 9 of the 13 factors compared between the two stocks.

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.

About Nuwellis

Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.