Comparing Neuronetics (NASDAQ:STIM) & Inogen (NASDAQ:INGN)

Neuronetics (NASDAQ:STIM) and Inogen (NASDAQ:INGN) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Volatility and Risk

Neuronetics has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Inogen has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares Neuronetics and Inogen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$74.89 million	1.22	-$43.71 million	($0.82)	-1.62
Inogen	$348.67 million	0.49	-$22.75 million	($0.86)	-7.34

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

Insider and Institutional Ownership

53.6% of Neuronetics shares are held by institutional investors. Comparatively, 89.9% of Inogen shares are held by institutional investors. 8.7% of Neuronetics shares are held by company insiders. Comparatively, 1.5% of Inogen 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.

Profitability

This table compares Neuronetics and Inogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-33.88%	-131.15%	-31.26%
Inogen	-6.52%	-11.56%	-7.42%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Neuronetics and Inogen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	1	0	2.00
Inogen	1	1	1	0	2.00

Neuronetics presently has a consensus target price of $7.00, indicating a potential upside of 426.32%. Inogen has a consensus target price of $11.00, indicating a potential upside of 74.33%. Given Neuronetics’ higher probable upside, analysts plainly believe Neuronetics is more favorable than Inogen.

Summary

Inogen beats Neuronetics on 7 of the 12 factors compared between the two stocks.

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. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

About Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.