Teleflex (NYSE:TFX) & Neuronetics (NASDAQ:STIM) Critical Review

Teleflex (NYSE:TFX) and Neuronetics (NASDAQ:STIM) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Profitability

This table compares Teleflex and Neuronetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teleflex	6.31%	15.08%	8.85%
Neuronetics	-43.47%	-156.36%	-35.69%

Volatility & Risk

Teleflex has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Teleflex and Neuronetics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teleflex	2	9	1	0	1.92
Neuronetics	1	0	1	0	2.00

Teleflex currently has a consensus price target of $141.57, indicating a potential upside of 17.64%. Neuronetics has a consensus price target of $7.00, indicating a potential upside of 153.62%. Given Neuronetics’ stronger consensus rating and higher possible upside, analysts clearly believe Neuronetics is more favorable than Teleflex.

Insider & Institutional Ownership

95.6% of Teleflex shares are owned by institutional investors. Comparatively, 53.6% of Neuronetics shares are owned by institutional investors. 1.4% of Teleflex shares are owned by insiders. Comparatively, 9.8% of Neuronetics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teleflex	$3.05 billion	1.75	$69.68 million	$4.25	28.32
Neuronetics	$74.89 million	2.44	-$43.71 million	($1.13)	-2.44

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

Summary

Teleflex beats Neuronetics on 8 of the 13 factors compared between the two stocks.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.

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.