Analyzing Neuronetics (NASDAQ:STIM) and Xcorporeal (OTCMKTS:XCRP)

Neuronetics (NASDAQ:STIM) and Xcorporeal (OTCMKTS:XCRP) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Analyst Ratings

This is a summary of current recommendations for Neuronetics and Xcorporeal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	1	0	2.00
Xcorporeal	0	0	0	0	0.00

Neuronetics presently has a consensus price target of $3.00, indicating a potential upside of 77.51%. Given Neuronetics’ stronger consensus rating and higher possible upside, research analysts plainly believe Neuronetics is more favorable than Xcorporeal.

Volatility and Risk

Neuronetics has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Xcorporeal has a beta of -0.68, indicating that its stock price is 168% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-26.15%	-121.26%	-27.67%
Xcorporeal	N/A	N/A	N/A

Earnings and Valuation

This table compares Neuronetics and Xcorporeal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$149.16 million	0.79	-$39.00 million	($0.59)	-2.86
Xcorporeal	N/A	N/A	N/A	N/A	N/A

Xcorporeal has lower revenue, but higher earnings than Neuronetics.

Institutional and Insider Ownership

53.6% of Neuronetics shares are owned by institutional investors. 8.4% of Neuronetics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Neuronetics beats Xcorporeal on 7 of the 10 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 Xcorporeal

Xcorporeal, Inc. is in the process of liquidation and dissolution, pursuant to the plan adopted by board of directors of the company on February 4, 2010. The company has formed the liquidating trust, Xcorporeal, Inc. Liquidating Trust, and transferred all of its assets to the trust for the purpose of completing the liquidation and dissolution of the company. Previously, it operated as a medical device company, which was engaged in the development of an extra-corporeal platform technology to be used in devices to replace the function of various human organs. Xcorporeal, Inc. was founded in 2001 and is based in Lake Forest, California.