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

Profitability

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

Net Margins Return on Equity Return on Assets
NeuroMetrix -83.92% -209.56% -135.03%
Landauer 12.09% 80.03% 10.11%

Dividends

Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. NeuroMetrix does not pay a dividend. Landauer pays out 57.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

6.5% of NeuroMetrix shares are owned by institutional investors. Comparatively, 79.6% of Landauer shares are owned by institutional investors. 4.4% of NeuroMetrix shares are owned by company insiders. Comparatively, 6.6% of Landauer shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

NeuroMetrix has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Landauer has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for NeuroMetrix and Landauer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeuroMetrix 0 0 2 0 3.00
Landauer 0 1 0 0 2.00

NeuroMetrix presently has a consensus target price of $26.00, indicating a potential upside of 1,275.66%. Given NeuroMetrix’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NeuroMetrix is more favorable than Landauer.

Earnings & Valuation

This table compares NeuroMetrix and Landauer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NeuroMetrix $15.72 million 0.26 -$13.27 million ($20.01) -0.09
Landauer $153.35 million 4.22 $39.95 million $1.93 34.82

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

Summary

Landauer beats NeuroMetrix on 11 of the 15 factors compared between the two stocks.

About NeuroMetrix

NeuroMetrix, Inc. is a healthcare company combining bioelectrical and digital medicine to address chronic health conditions, including chronic pain, sleep disorders and diabetes. The Company is engaged in the sale of medical equipment, and consumables and accessories. It has two principal product lines: Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. Its products include ADVANCE NCS/EMG System (the ADVANCE System), Quell, SENSUS and DPNCheck. Quell is a wearable device for relief of chronic intractable pain, such as nerve pain due to diabetes and lower back problems. The SENSUS pain therapy device, the technological predecessor to Quell, is a prescription neuro-stimulation device based on transcutaneous electrical nerve stimulation (TENS) for relief of chronic, intractable pain. DPNCheck is a quantitative nerve conduction test. ADVANCE System is a platform for the performance of traditional nerve conduction studies.

About Landauer

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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