NeuroPace (NASDAQ:NPCE – Get Free Report) and OPKO Health (NASDAQ:OPK – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Profitability
This table compares NeuroPace and OPKO Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeuroPace | -21.47% | -105.67% | -20.01% |
| OPKO Health | -37.19% | -17.42% | -11.24% |
Risk & Volatility
NeuroPace has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeuroPace | 1 | 1 | 4 | 2 | 2.88 |
| OPKO Health | 1 | 3 | 2 | 1 | 2.43 |
NeuroPace currently has a consensus price target of $18.67, indicating a potential upside of 43.59%. OPKO Health has a consensus price target of $2.03, indicating a potential upside of 81.55%. Given OPKO Health’s higher possible upside, analysts clearly believe OPKO Health is more favorable than NeuroPace.
Insider & Institutional Ownership
78.8% of NeuroPace shares are held by institutional investors. Comparatively, 64.6% of OPKO Health shares are held by institutional investors. 20.5% of NeuroPace shares are held by company insiders. Comparatively, 49.7% of OPKO Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares NeuroPace and OPKO Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeuroPace | $99.99 million | 4.38 | -$21.47 million | ($0.66) | -19.70 |
| OPKO Health | $606.90 million | 1.40 | -$225.68 million | ($0.30) | -3.73 |
NeuroPace has higher earnings, but lower revenue than OPKO Health. NeuroPace is trading at a lower price-to-earnings ratio than OPKO Health, indicating that it is currently the more affordable of the two stocks.
Summary
NeuroPace beats OPKO Health on 8 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 OPKO Health
OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.
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