Sanara MedTech (NASDAQ:SMTI) versus Neuronetics (NASDAQ:STIM) Head-To-Head Review

Neuronetics (NASDAQ:STIM) and Sanara MedTech (NASDAQ:SMTI) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares Neuronetics and Sanara MedTech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$149.16 million	1.48	-$39.00 million	($0.44)	-6.59
Sanara MedTech	$103.12 million	3.13	-$37.56 million	($3.59)	-9.77

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

Profitability

This table compares Neuronetics and Sanara MedTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-19.62%	-125.11%	-22.15%
Sanara MedTech	-29.15%	29.72%	2.84%

Analyst Recommendations

This is a breakdown of current recommendations for Neuronetics and Sanara MedTech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	1	0	5	0	2.67
Sanara MedTech	1	4	0	0	1.80

Neuronetics currently has a consensus price target of $4.67, suggesting a potential upside of 60.92%. Sanara MedTech has a consensus price target of $35.00, suggesting a potential downside of 0.20%. Given Neuronetics’ stronger consensus rating and higher probable upside, research analysts plainly believe Neuronetics is more favorable than Sanara MedTech.

Insider and Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 8.1% of Sanara MedTech shares are owned by institutional investors. 8.4% of Neuronetics shares are owned by insiders. Comparatively, 42.0% of Sanara MedTech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Neuronetics has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Sanara MedTech has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Summary

Neuronetics beats Sanara MedTech on 8 of the 13 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 Sanara MedTech

Sanara MedTech Inc., a medical technology company, develops, markets, and distributes surgical, wound, and skincare products and services to physicians, hospitals, clinics, and post-acute care settings in the United States. The company offers CellerateRX Surgical, a medical hydrolysate of Type I bovine collagen indicated for the management of surgical, traumatic, and partial- and full-thickness wounds, as well as first- and second-degree burns; and HYCOL, a medical hydrolysate of Type I bovine collagen intended for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers. It also provides BIAKOS Antimicrobial Skin and Wound Cleanser, a patented product that contains synergistic ingredients that have been shown to impact mature biofilm microbes; BIAKOS Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing that helps against planktonic microbes, as well as immature and mature biofilms; and BIAKOS Antimicrobial Skin and Wound Irrigation Solution. In addition, it develops BIASURGE, a no-rinse surgical solution used for wound irrigation; FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; TEXAGEN, a multi-layer amniotic membrane allograft used as an anatomical barrier with robust handling that can be sutured for securement; and VIM Amnion Matrix, a homologous wound covering product. Sanara MedTech Inc. was incorporated in 2001 and is based in Fort Worth, Texas.