Contrasting Glaukos (NYSE:GKOS) and NeuroPace (NASDAQ:NPCE)

NeuroPace (NASDAQ:NPCE) and Glaukos (NYSE:GKOS) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

78.8% of NeuroPace shares are held by institutional investors. Comparatively, 99.0% of Glaukos shares are held by institutional investors. 20.5% of NeuroPace shares are held by company insiders. Comparatively, 6.4% of Glaukos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for NeuroPace and Glaukos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	1	1	5	0	2.57
Glaukos	2	2	11	1	2.69

NeuroPace currently has a consensus target price of $16.60, indicating a potential upside of 52.01%. Glaukos has a consensus target price of $122.00, indicating a potential upside of 39.51%. Given NeuroPace’s higher probable upside, research analysts plainly believe NeuroPace is more favorable than Glaukos.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-29.29%	-168.61%	-25.48%
Glaukos	-21.43%	-8.59%	-6.61%

Risk and Volatility

NeuroPace has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Glaukos has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroPace	$79.91 million	4.52	-$27.14 million	($0.84)	-13.00
Glaukos	$383.48 million	13.08	-$146.37 million	($1.65)	-53.00

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

Summary

Glaukos beats NeuroPace on 9 of the 15 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 Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.