Financial Analysis: Vivani Medical (NASDAQ:VANI) & Cutera (NASDAQ:CUTR)

Cutera (NASDAQ:CUTR) and Vivani Medical (NASDAQ:VANI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Profitability

This table compares Cutera and Vivani Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cutera	-84.86%	N/A	-45.07%
Vivani Medical	N/A	-102.42%	-49.21%

Earnings & Valuation

This table compares Cutera and Vivani Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cutera	$155.21 million	0.01	-$162.83 million	($6.58)	-0.01
Vivani Medical	N/A	N/A	-$25.65 million	($0.43)	-2.77

Vivani Medical has lower revenue, but higher earnings than Cutera. Vivani Medical is trading at a lower price-to-earnings ratio than Cutera, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.7% of Cutera shares are owned by institutional investors. Comparatively, 6.8% of Vivani Medical shares are owned by institutional investors. 0.4% of Cutera shares are owned by insiders. Comparatively, 46.4% of Vivani Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Cutera has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Vivani Medical has a beta of 2.93, indicating that its stock price is 193% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Cutera and Vivani Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cutera	0	1	1	0	2.50
Vivani Medical	0	0	1	0	3.00

Cutera presently has a consensus price target of $3.00, suggesting a potential upside of 7,592.31%. Vivani Medical has a consensus price target of $4.00, suggesting a potential upside of 236.13%. Given Cutera’s higher possible upside, analysts clearly believe Cutera is more favorable than Vivani Medical.

About Cutera

Cutera, Inc. provides aesthetic and dermatology solutions for medical practitioners worldwide. It develops, manufactures, and markets energy-based product platforms for medical practitioners; and distributes third-party manufactured skincare products. The company provides AviClear for the treatment of mild, moderate, and severe inflammatory acne vulgaris; Secret PRO, a device that utilizes fractional CO2 for skin resurfacing and radio frequency (RF) microneedling for skin revitalization; truFlex, a bio-electrical muscle stimulation device designs to strengthen, firm and tone the abdomen, buttocks, and thighs; and excel V/V+, a vascular and benign pigmented lesion treatment platform. It also offers truSculpt, a high-powered radio frequency system designed for circumferential reduction, lipolysis, and deep tissue heating and treat all skin types; Secret RF, a fractional RF microneedling device that delivers heat into the deeper layers of the skin using controlled RF energy; and Enlighten SR/III, a laser platform with a dual wavelength for multi-colored tattoo removal, and the treatment of benign pigmented lesions and acne scars. In addition, the company provides Excel HR, a hair removal solution for all skin types; xeo, a multi-application platform for the removal of unwanted hair, treatment of vascular lesions, and skin revitalization by treating discoloration, fine lines, and laxity; and Secret DUO, two dual non-ablative fractional technologies that can be used individually or in combination to target a variety of aesthetic concerns and skin conditions on all skin types with little to no downtime. Further, it offers its products through direct sales and services, and network of distributors and direct international sales. Cutera, Inc. was incorporated in 1998 and is headquartered in Brisbane, California.

About Vivani Medical

Vivani Medical, Inc., a clinical stage company, develops various implants that treat chronic diseases with high unmet medical need. It engages in developing a portfolio of miniature drug implants to deliver minimally fluctuating drug profiles; and implantable visual prostheses devices to deliver useful artificial vision to blind individuals. The company is headquartered in Emeryville, California.