NeuroPace (NASDAQ:NPCE – Get Free Report) and NEXGEL (NASDAQ:NXGL – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of recent ratings and price targets for NeuroPace and NEXGEL, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeuroPace | 0 | 1 | 5 | 0 | 2.83 |
| NEXGEL | 0 | 0 | 0 | 0 | 0.00 |
NeuroPace presently has a consensus price target of $15.00, indicating a potential upside of 37.99%. Given NeuroPace’s stronger consensus rating and higher possible upside, analysts plainly believe NeuroPace is more favorable than NEXGEL.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeuroPace | $76.45 million | 4.24 | -$32.96 million | ($1.00) | -10.87 |
| NEXGEL | $6.73 million | 4.60 | -$3.16 million | ($0.58) | -7.86 |
NEXGEL has lower revenue, but higher earnings than NeuroPace. NeuroPace is trading at a lower price-to-earnings ratio than NEXGEL, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NeuroPace and NEXGEL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeuroPace | -36.74% | -205.41% | -28.29% |
| NEXGEL | -52.60% | -71.19% | -34.79% |
Volatility and Risk
NeuroPace has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, NEXGEL has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
78.8% of NeuroPace shares are held by institutional investors. Comparatively, 2.2% of NEXGEL shares are held by institutional investors. 22.2% of NeuroPace shares are held by insiders. Comparatively, 24.9% of NEXGEL shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
NeuroPace beats NEXGEL on 8 of the 14 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 NEXGEL
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
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