Analyzing NeuroPace (NASDAQ:NPCE) and Sysmex (OTCMKTS:SSMXY)

NeuroPace (NASDAQ:NPCE) and Sysmex (OTCMKTS:SSMXY) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings for NeuroPace and Sysmex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	1	1	4	2	2.88
Sysmex	0	2	1	0	2.33

NeuroPace presently has a consensus target price of $18.67, suggesting a potential upside of 26.25%. Given NeuroPace’s stronger consensus rating and higher probable upside, equities research analysts plainly believe NeuroPace is more favorable than Sysmex.

Profitability

This table compares NeuroPace and Sysmex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-21.47%	-105.67%	-20.01%
Sysmex	8.86%	9.27%	6.63%

Insider and Institutional Ownership

78.8% of NeuroPace shares are held by institutional investors. 20.5% of NeuroPace shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NeuroPace and Sysmex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroPace	$99.99 million	4.98	-$21.47 million	($0.66)	-22.40
Sysmex	$3.34 billion	1.72	$357.79 million	$0.48	19.06

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

Volatility & Risk

NeuroPace has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Sysmex has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

NeuroPace beats Sysmex on 8 of the 15 factors compared between the two stocks.

About NeuroPace

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.

About Sysmex

Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.