NuVasive (NASDAQ: NUVA) and Exactech (NASDAQ:EXAC) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares NuVasive and Exactech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NuVasive 6.36% 13.65% 6.17%
Exactech 0.18% 7.22% 5.84%

Analyst Recommendations

This is a breakdown of current ratings and target prices for NuVasive and Exactech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NuVasive 0 4 11 0 2.73
Exactech 0 3 0 0 2.00

NuVasive currently has a consensus target price of $71.64, indicating a potential upside of 54.24%. Exactech has a consensus target price of $49.00, indicating a potential downside of 0.51%. Given NuVasive’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NuVasive is more favorable than Exactech.

Institutional & Insider Ownership

61.2% of Exactech shares are held by institutional investors. 1.2% of NuVasive shares are held by insiders. Comparatively, 28.3% of Exactech shares are held 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.

Valuation and Earnings

This table compares NuVasive and Exactech’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NuVasive $962.07 million 2.46 $37.14 million $1.19 39.03
Exactech $257.57 million 2.76 $160,000.00 $0.02 2,462.50

NuVasive has higher revenue and earnings than Exactech. NuVasive is trading at a lower price-to-earnings ratio than Exactech, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

NuVasive has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Exactech has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

NuVasive beats Exactech on 9 of the 14 factors compared between the two stocks.

NuVasive Company Profile

Nuvasive, Inc. is a medical device company. The Company focuses on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine surgery. Its product portfolio focuses on applications for spine fusion surgery, including biologics used to aid in the spinal fusion process. Its principal product offering includes a minimally-disruptive surgical platform called Maximum Access Surgery (MAS). The platform includes its software-driven nerve detection and avoidance systems, including NVM5, and intraoperative monitoring services and support; MaXcess, an integrated split-blade retractor system, and a range of implants and biologics. The platform combines three product categories: its MaXcess retractors, specialized implants and fixation products, and nerve monitoring systems and service offerings that collectively enable surgeons to detect and navigate around nerves, while directing customized access to the spine for implant delivery.

Exactech Company Profile

Exactech, Inc. develops, manufactures, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic services to hospitals and physicians. The Company’s segments include knee, hip, biologics and spine, extremity and other products. Its other products segment includes miscellaneous sales categories, such as bone cement, instrument rental fees, shipping charges and other product lines. The Company distributes joint replacement systems, including knee, hip, spine and extremity implant systems, and biologic products and services and bone cement materials used in orthopedic surgery and dental procedures. The Exactech Knee System provides solutions for partial, primary and revision total knee arthroplasty. Its hip solutions address the continuum of hip arthroplasty. It manufactures and distributes various products and services designed for the healing and regeneration of bone and soft tissue, including products, which contain human allograft.

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