Analyzing Neuronetics (STIM) and Its Competitors

Neuronetics (NASDAQ: STIM) is one of 120 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it contrast to its peers? We will compare Neuronetics to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Institutional & Insider Ownership

69.4% of Neuronetics shares are held by institutional investors. Comparatively, 50.7% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 15.8% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Neuronetics and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neuronetics N/A N/A N/A
Neuronetics Competitors -30.00% -41.48% -13.59%

Analyst Ratings

This is a summary of recent ratings and target prices for Neuronetics and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neuronetics 0 0 5 0 3.00
Neuronetics Competitors 799 2799 4973 252 2.53

Neuronetics presently has a consensus target price of $32.25, indicating a potential upside of 93.23%. As a group, “Surgical & medical instruments” companies have a potential upside of 21.23%. Given Neuronetics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Neuronetics is more favorable than its peers.

Earnings & Valuation

This table compares Neuronetics and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Neuronetics $52.78 million -$24.10 million -6.20
Neuronetics Competitors $1.48 billion $146.48 million 43.85

Neuronetics’ peers have higher revenue and earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Neuronetics beats its peers on 7 of the 12 factors compared.

About Neuronetics

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders in the United States, Japan, 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 psychiatrist customers. Neuronetics, Inc. was founded in 2003 and is headquartered in Malvern, Pennsylvania.

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