Contrasting Akili (NASDAQ:AKLI) & NeuroPace (NASDAQ:NPCE)

Akili (NASDAQ:AKLI) and NeuroPace (NASDAQ:NPCE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Akili and NeuroPace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akili	0	0	1	0	3.00
NeuroPace	0	1	6	0	2.86

Akili presently has a consensus price target of $4.00, suggesting a potential upside of 1,622.65%. NeuroPace has a consensus price target of $15.67, suggesting a potential upside of 11.90%. Given Akili’s stronger consensus rating and higher possible upside, equities analysts plainly believe Akili is more favorable than NeuroPace.

Valuation & Earnings

This table compares Akili and NeuroPace’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akili	$1.68 million	10.88	-$59.49 million	($0.76)	-0.31
NeuroPace	$65.42 million	5.62	-$32.96 million	($1.28)	-10.94

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

Insider & Institutional Ownership

53.1% of Akili shares are held by institutional investors. Comparatively, 78.8% of NeuroPace shares are held by institutional investors. 10.1% of Akili shares are held by insiders. Comparatively, 27.5% of NeuroPace shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Akili has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, NeuroPace has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Profitability

This table compares Akili and NeuroPace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akili	-3,545.47%	-76.34%	-56.48%
NeuroPace	-50.38%	-153.76%	-31.73%

Summary

NeuroPace beats Akili on 8 of the 14 factors compared between the two stocks.

About Akili

Akili, Inc., a digital medicine company, develops cognitive treatments through game-changing technologies. The company provides EndeavorRx, a computer-based testing for cognitive dysfunction across several neurology and psychiatry indications, including attention-deficit hyperactivity disorder, depressive disorder, autism spectrum disorder, multiple sclerosis, and other neuroinflammatory diseases. It also offers selective stimulus management engine mechanism to activate the fronto-parietal cortex area in the brain; body brain trainer for attention, impulsivity, working memory, and goal management; and spatial navigation engine for spatial navigation, memory, and planning and organization. The company was founded in 2011 and is headquartered in Boston, Massachusetts.

About NeuroPace

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.