Neuronetics (NASDAQ:STIM – Get Free Report) and Inogen (NASDAQ:INGN – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Analyst Recommendations
This is a summary of current recommendations for Neuronetics and Inogen, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 1 | 0 | 1 | 0 | 2.00 |
| Inogen | 1 | 1 | 1 | 0 | 2.00 |
Neuronetics presently has a consensus price target of $7.00, indicating a potential upside of 436.40%. Inogen has a consensus price target of $11.00, indicating a potential upside of 77.99%. Given Neuronetics’ higher possible upside, analysts clearly believe Neuronetics is more favorable than Inogen.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $129.87 million | 0.69 | -$43.71 million | ($0.82) | -1.59 |
| Inogen | $348.67 million | 0.48 | -$22.75 million | ($0.86) | -7.19 |
Inogen has higher revenue and earnings than Neuronetics. Inogen is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Neuronetics has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Inogen has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
Insider & Institutional Ownership
53.6% of Neuronetics shares are held by institutional investors. Comparatively, 89.9% of Inogen shares are held by institutional investors. 8.7% of Neuronetics shares are held by insiders. Comparatively, 1.5% of Inogen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Neuronetics and Inogen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -33.88% | -131.15% | -31.26% |
| Inogen | -6.52% | -11.56% | -7.42% |
Summary
Inogen beats Neuronetics on 7 of the 12 factors compared between the two stocks.
About Neuronetics
Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
About Inogen
Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.
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