SeaSpine Holdings Corporation (NASDAQ: SPNE) and Nevro Corp. (NYSE:NVRO) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Insider and Institutional Ownership
39.0% of SeaSpine Holdings Corporation shares are held by institutional investors. 14.6% of SeaSpine Holdings Corporation shares are held by company insiders. Comparatively, 12.1% of Nevro Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares SeaSpine Holdings Corporation and Nevro Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SeaSpine Holdings Corporation||$130.35 million||0.98||-$21.74 million||($3.18)||-3.20|
|Nevro Corp.||$277.91 million||9.29||-$22.57 million||($1.38)||-63.55|
SeaSpine Holdings Corporation has higher revenue, but lower earnings than Nevro Corp.. Nevro Corp. is trading at a lower price-to-earnings ratio than SeaSpine Holdings Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for SeaSpine Holdings Corporation and Nevro Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SeaSpine Holdings Corporation||0||0||3||0||3.00|
SeaSpine Holdings Corporation currently has a consensus target price of $18.50, suggesting a potential upside of 81.55%. Nevro Corp. has a consensus target price of $102.00, suggesting a potential upside of 16.31%. Given SeaSpine Holdings Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe SeaSpine Holdings Corporation is more favorable than Nevro Corp..
This table compares SeaSpine Holdings Corporation and Nevro Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SeaSpine Holdings Corporation||-27.90%||-32.86%||-24.72%|
Risk & Volatility
SeaSpine Holdings Corporation has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Nevro Corp. has a beta of -0.67, suggesting that its share price is 167% less volatile than the S&P 500.
Nevro Corp. beats SeaSpine Holdings Corporation on 7 of the 13 factors compared between the two stocks.
SeaSpine Holdings Corporation Company Profile
SeaSpine Holdings Corporation is a medical technology company. The Company is focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. The Company operates through the development, manufacture and marketing of orthobiologics and spinal fusion hardware segment. It has a portfolio of orthobiologics and spinal fusion hardware solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures in the lumbar, thoracic and cervical spine. It offers a portfolio of orthobiologics and spinal fusion hardware products for the treatment of patients suffering from spinal and other orthopedic disorders. Its orthobiologics products consist of a range of bone graft substitutes that are designed to improve bone fusion rates following a range of orthopedic surgeries, including spine, hip and extremities procedures.
Nevro Corp. Company Profile
Nevro Corp. is a global medical device company. The Company focuses on providing products that improve the quality of life of patients suffering from chronic pain. The Company has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its HF10 therapy is designed to deliver neuromodulation solutions for treating chronic pain. HF10 therapy enables patients to achieve sustained pain relief without paresthesia, thus enabling its patients to avoid the uncomfortable shocking or jolting sensations commonly associated with paresthesia. HF10 therapy relies on consistent anatomical lead placement. As of December 31, 2016, it was investigating the use of HF10 therapy to address additional indications, such as chronic upper limb and neck pain, painful neuropathies and non-surgical refractory back pain. The Senza system is approved to create electrical impulses from 2 hertz (Hz) to 10,000 Hz.
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