Critical Review: Sanuwave Health (NASDAQ:SNWV) and CVRx (NASDAQ:CVRX)

Sanuwave Health (NASDAQ:SNWV) and CVRx (NASDAQ:CVRX) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Volatility & Risk

Sanuwave Health has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, CVRx has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Sanuwave Health and CVRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanuwave Health	32.38%	1,728.10%	39.04%
CVRx	-84.93%	-152.35%	-50.93%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sanuwave Health and CVRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanuwave Health	2	0	1	0	1.67
CVRx	1	3	2	0	2.17

Sanuwave Health currently has a consensus price target of $47.00, suggesting a potential upside of 791.84%. CVRx has a consensus price target of $4.30, suggesting a potential upside of 209.35%. Given Sanuwave Health’s higher possible upside, equities research analysts clearly believe Sanuwave Health is more favorable than CVRx.

Earnings and Valuation

This table compares Sanuwave Health and CVRx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanuwave Health	$44.05 million	1.03	$11.81 million	$0.24	21.96
CVRx	$56.65 million	0.65	-$53.31 million	($1.98)	-0.70

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

Insider & Institutional Ownership

42.5% of Sanuwave Health shares are owned by institutional investors. Comparatively, 75.3% of CVRx shares are owned by institutional investors. 14.4% of Sanuwave Health shares are owned by insiders. Comparatively, 16.6% of CVRx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sanuwave Health beats CVRx on 9 of the 14 factors compared between the two stocks.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.