Nevro (NYSE:NVRO – Get Free Report) and ProSomnus (NASDAQ:OSA – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Profitability
This table compares Nevro and ProSomnus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nevro | 0.61% | -32.73% | -17.32% |
| ProSomnus | N/A | N/A | -48.65% |
Institutional and Insider Ownership
95.5% of Nevro shares are owned by institutional investors. Comparatively, 7.9% of ProSomnus shares are owned by institutional investors. 3.0% of Nevro shares are owned by company insiders. Comparatively, 8.5% of ProSomnus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Analyst Ratings
This is a summary of current ratings for Nevro and ProSomnus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nevro | 2 | 8 | 4 | 0 | 2.14 |
| ProSomnus | 0 | 0 | 2 | 0 | 3.00 |
Nevro presently has a consensus price target of $30.62, indicating a potential upside of 50.15%. ProSomnus has a consensus price target of $10.00, indicating a potential upside of 843.40%. Given ProSomnus’ stronger consensus rating and higher possible upside, analysts clearly believe ProSomnus is more favorable than Nevro.
Earnings & Valuation
This table compares Nevro and ProSomnus’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nevro | $406.36 million | 1.81 | $3.00 million | $0.01 | 2,041.04 |
| ProSomnus | $19.39 million | 0.88 | -$7.14 million | N/A | N/A |
Nevro has higher revenue and earnings than ProSomnus.
Summary
Nevro beats ProSomnus on 8 of the 12 factors compared between the two stocks.
About Nevro
Nevro Corp., a medical device company, provides products for patients suffering from chronic pain in the United States and internationally. The company develops and commercializes the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation system for the treatment of chronic pain, as well as Senza II and Senza Omnia SCS systems. It also provides 10 kHz Therapy, which delivers neuromodulation solutions for treating chronic pain based on available clinical evidence. The company's Senza HFX iQ IPG system includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system. In addition, it offers surpass surgical and percutaneous leads. The company sells its products through its direct sales force, and a network of sales agents and independent distributors. Nevro Corp. was incorporated in 2006 and is headquartered in Redwood City, California.
About ProSomnus
ProSomnus, Inc. operates as a medical technology company that develops, manufactures, and markets precision intraoral medical devices for treating and managing patients with obstructive sleep apnea. The company sells its products to sleep dentists, sleep physicians, primary care providers, otolarygologists, and other integrated healthcare service providers through a direct sales force. ProSomnus, Inc. is headquartered in Pleasanton, California.
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