Restoration Robotics (NYSE: NVRO) and Nevro (NYSE:NVRO) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Restoration Robotics and Nevro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restoration Robotics -104.01% N/A -89.25%
Nevro -10.68% -15.84% -8.70%

Earnings and Valuation

This table compares Restoration Robotics and Nevro’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Restoration Robotics $21.30 million 2.48 -$17.84 million ($2.50) -0.72
Nevro $326.67 million 5.72 -$36.65 million ($1.25) -49.60

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

Institutional & Insider Ownership

28.1% of Restoration Robotics shares are owned by institutional investors. 37.8% of Restoration Robotics shares are owned by company insiders. Comparatively, 6.9% of Nevro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Restoration Robotics and Nevro, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restoration Robotics 0 0 3 0 3.00
Nevro 0 4 6 0 2.60

Restoration Robotics presently has a consensus price target of $9.00, indicating a potential upside of 397.24%. Nevro has a consensus price target of $81.89, indicating a potential upside of 32.08%. Given Restoration Robotics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Restoration Robotics is more favorable than Nevro.

Summary

Restoration Robotics beats Nevro on 7 of the 13 factors compared between the two stocks.

About Restoration Robotics

Restoration Robotics, Inc., a medical device company, develops and commercializes image-guided robotic systems in the United States and internationally. The company offers ARTAS System, a physician-assisted robotic system that identifies and dissects hair follicular units directly from the scalp and creates recipient implant sites. Its system includes the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. The company was founded in 2002 and is headquartered in San Jose, California.

About Nevro

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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