Head to Head Comparison: Profound Medical (NASDAQ:PROF) versus CVRx (NASDAQ:CVRX)

Profound Medical (NASDAQ:PROF) and CVRx (NASDAQ:CVRX) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility and Risk

Profound Medical has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, CVRx has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

47.9% of Profound Medical shares are held by institutional investors. Comparatively, 75.3% of CVRx shares are held by institutional investors. 1.5% of Profound Medical shares are held by insiders. Comparatively, 18.9% of CVRx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Profound Medical and CVRx’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Profound Medical	$7.20 million	35.70	-$28.57 million	($1.29)	-8.14
CVRx	$39.29 million	5.10	-$41.20 million	($2.47)	-3.75

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

Profitability

This table compares Profound Medical and CVRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Profound Medical	-386.63%	-70.08%	-53.76%
CVRx	-123.58%	-66.05%	-46.99%

Analyst Ratings

This is a summary of recent recommendations and price targets for Profound Medical and CVRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Profound Medical	0	0	3	1	3.25
CVRx	0	2	4	0	2.67

Profound Medical presently has a consensus target price of $15.31, suggesting a potential upside of 45.83%. CVRx has a consensus target price of $13.80, suggesting a potential upside of 48.87%. Given CVRx’s higher possible upside, analysts plainly believe CVRx is more favorable than Profound Medical.

Summary

CVRx beats Profound Medical on 10 of the 15 factors compared between the two stocks.

About Profound Medical

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.