Head to Head Analysis: Retractable Technologies (NYSE:RVP) versus Neuronetics (NASDAQ:STIM)

Retractable Technologies (NYSE:RVP) and Neuronetics (NASDAQ:STIM) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

7.6% of Retractable Technologies shares are held by institutional investors. Comparatively, 53.6% of Neuronetics shares are held by institutional investors. 54.6% of Retractable Technologies shares are held by insiders. Comparatively, 9.8% of Neuronetics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Retractable Technologies and Neuronetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Retractable Technologies	$43.60 million	0.52	-$7.01 million	($0.61)	-1.23
Neuronetics	$71.35 million	0.51	-$30.19 million	($1.12)	-1.06

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Retractable Technologies and Neuronetics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Retractable Technologies	0	0	0	0	0.00
Neuronetics	0	1	3	0	2.75

Neuronetics has a consensus price target of $4.67, indicating a potential upside of 292.16%. Given Neuronetics’ stronger consensus rating and higher probable upside, analysts clearly believe Neuronetics is more favorable than Retractable Technologies.

Risk and Volatility

Retractable Technologies has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Retractable Technologies	-46.72%	-18.67%	-10.24%
Neuronetics	-45.06%	-109.00%	-31.72%

Summary

Neuronetics beats Retractable Technologies on 8 of the 14 factors compared between the two stocks.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.

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.