Financial Comparison: Neuronetics (NASDAQ:STIM) and Assure (NASDAQ:IONM)

Neuronetics (NASDAQ:STIM) and Assure (NASDAQ:IONM) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider and Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 3.3% of Assure shares are owned by institutional investors. 9.8% of Neuronetics shares are owned by insiders. Comparatively, 3.8% of Assure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Neuronetics has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500. Comparatively, Assure has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-50.09%	-141.24%	-32.77%
Assure	-25,178.32%	N/A	-249.78%

Analyst Ratings

This is a breakdown of current recommendations for Neuronetics and Assure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	0	1	3	0	2.75
Assure	0	0	0	0	0.00

Neuronetics currently has a consensus target price of $4.67, suggesting a potential upside of 211.11%. Given Neuronetics’ stronger consensus rating and higher possible upside, research analysts plainly believe Neuronetics is more favorable than Assure.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$72.71 million	0.63	-$30.19 million	($1.23)	-1.22
Assure	$149,000.00	1.75	-$26.08 million	N/A	N/A

Assure has lower revenue, but higher earnings than Neuronetics.

Summary

Neuronetics beats Assure on 9 of the 12 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 Assure

Assure Holdings Corp., through its subsidiaries, provides technical and professional intraoperative neuromonitoring surgical support services in the United States. It offers services in the areas of neurosurgery, spine, cardiovascular, orthopedic, ear, nose, throat, and other surgical procedures. The company delivers various clinical and operational services, including scheduling of the interoperative neurophysiologist and supervising practitioner, real time monitoring, patient advocacy, and billing services to support surgeons and medical facilities during invasive procedures. Assure Holdings Corp. is based in Englewood, Colorado.