Neuronetics (NASDAQ:STIM – Get Free Report) and Spectral AI (NASDAQ:MDAI – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Profitability
This table compares Neuronetics and Spectral AI’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% |
| Spectral AI | -70.64% | N/A | -27.57% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Neuronetics and Spectral AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 1 | 0 | 1 | 0 | 2.00 |
| Spectral AI | 1 | 0 | 2 | 0 | 2.33 |
Institutional and Insider Ownership
53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 67.1% of Spectral AI shares are owned by institutional investors. 9.8% of Neuronetics shares are owned by company insiders. Comparatively, 30.7% of Spectral AI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Neuronetics has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Spectral AI has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
Valuation and Earnings
This table compares Neuronetics and Spectral AI”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $74.89 million | 1.21 | -$43.71 million | ($0.82) | -1.62 |
| Spectral AI | $29.58 million | 1.47 | -$15.31 million | ($0.74) | -1.91 |
Spectral AI has lower revenue, but higher earnings than Neuronetics. Spectral AI is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Summary
Spectral AI beats Neuronetics on 10 of the 14 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 Spectral AI
Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.
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