Critical Analysis: Sensus Healthcare (NASDAQ:SRTS) versus NeuroMetrix (NASDAQ:NURO)

Sensus Healthcare (NASDAQ:SRTS) and NeuroMetrix (NASDAQ:NURO) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Sensus Healthcare and NeuroMetrix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensus Healthcare	18.27%	13.46%	12.10%
NeuroMetrix	-181.04%	-41.74%	-38.57%

Earnings and Valuation

This table compares Sensus Healthcare and NeuroMetrix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensus Healthcare	$36.37 million	2.83	$490,000.00	$0.29	21.66
NeuroMetrix	$4.38 million	1.92	-$6.53 million	($6.30)	-0.66

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

Risk & Volatility

Sensus Healthcare has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, NeuroMetrix has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Sensus Healthcare and NeuroMetrix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensus Healthcare	0	0	2	1	3.33
NeuroMetrix	0	0	0	0	N/A

Sensus Healthcare presently has a consensus target price of $10.00, indicating a potential upside of 59.24%. Given Sensus Healthcare’s higher possible upside, research analysts clearly believe Sensus Healthcare is more favorable than NeuroMetrix.

Institutional & Insider Ownership

25.3% of Sensus Healthcare shares are held by institutional investors. Comparatively, 19.4% of NeuroMetrix shares are held by institutional investors. 11.1% of Sensus Healthcare shares are held by company insiders. Comparatively, 7.3% of NeuroMetrix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sensus Healthcare beats NeuroMetrix on 13 of the 14 factors compared between the two stocks.

About Sensus Healthcare

Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.

About NeuroMetrix

NeuroMetrix, Inc., a commercial stage neurotechnology company, engages in designing, building, and marketing medical devices that stimulate and analyze nerve response for diagnostic and therapeutic purposes in the United States, Europe, Japan, and China. Its marketed products include DPNCheck, a nerve conduction test that is used to evaluate peripheral neuropathies, such as diabetic peripheral neuropathy; Quell, a wearable device for symptomatic relief and management of chronic pain; and ADVANCE system offers services to device and provide disposable electrodes to a customer base of hand surgeons and manufacturers for industrial health use. The company offers its products to managed care organizations, endocrinologists, podiatrists, and primary care physicians; occupational health, primary care, internal medicine, orthopedic, and hand surgeons; and pain medicine physicians, neurologists, physical medicine and rehabilitation physicians, and neurosurgeons. NeuroMetrix, Inc. was incorporated in 1996 and is headquartered in Woburn, Massachusetts.