Analyzing Interpace Diagnostics Group (IDXG) and Nevro (NVRO)

Interpace Diagnostics Group (NASDAQ:IDXG) and Nevro (NYSE:NVRO) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Valuation and Earnings

This table compares Interpace Diagnostics Group and Nevro’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interpace Diagnostics Group $15.90 million 2.48 -$12.21 million ($0.81) -1.73
Nevro $326.67 million 4.89 -$36.65 million ($1.25) -42.41

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Interpace Diagnostics Group and Nevro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 4 0 3.00
Nevro 0 4 6 0 2.60

Interpace Diagnostics Group currently has a consensus target price of $3.44, indicating a potential upside of 145.54%. Nevro has a consensus target price of $81.89, indicating a potential upside of 54.48%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Interpace Diagnostics Group is more favorable than Nevro.

Volatility & Risk

Interpace Diagnostics Group has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Nevro has a beta of -0.68, suggesting that its share price is 168% less volatile than the S&P 500.

Profitability

This table compares Interpace Diagnostics Group and Nevro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -71.14% -34.58% -25.64%
Nevro -10.68% -15.84% -8.70%

Insider and Institutional Ownership

12.5% of Interpace Diagnostics Group shares are held by institutional investors. 2.8% of Interpace Diagnostics Group shares are held by company insiders. Comparatively, 6.9% of Nevro 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.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc. develops and commercializes molecular diagnostic tests to detect genetic and other molecular alterations associated with gastrointestinal and endocrine cancers. It offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion molecular test that helps physicians better assess risk of pancreaticobiliary cancers using its proprietary PathFinder platform; ThyGenX, an oncogenic mutation panel that helps identify malignant thyroid nodules; and ThyraMIR, an microRNA gene expression assay that helps to classify risk of cancer in thyroid nodules. The company's customers consist primarily of physicians, hospitals, and clinics. The company was formerly known as PDI, Inc. and changed its name to Interpace Diagnostics Group, Inc. in December 2015. Interpace Diagnostics Group, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

Nevro Company Profile

Nevro Corp., a medical device company, provides products for the patients suffering from chronic pain in the United States and internationally. The company develops and commercializes the Senza spinal cord stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its solution for chronic pain also includes HF10 Therapy, which delivers neuromodulation solutions for treating chronic pain based on available clinical evidence. The company sells its products through its direct sales force, and a network of sales agents and independent distributors. Nevro Corp. was founded in 2006 and is headquartered in Redwood City, California.

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