Neuronetics (NASDAQ:STIM – Get Free Report) and Co-Diagnostics (NASDAQ:CODX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Profitability
This table compares Neuronetics and Co-Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neuronetics | -45.06% | -109.00% | -31.72% |
| Co-Diagnostics | -411.18% | -44.69% | -40.47% |
Volatility & Risk
Neuronetics has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, Co-Diagnostics has a beta of -0.86, suggesting that its stock price is 186% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neuronetics | 0 | 1 | 3 | 0 | 2.75 |
| Co-Diagnostics | 0 | 1 | 0 | 0 | 2.00 |
Neuronetics presently has a consensus target price of $4.67, indicating a potential upside of 401.95%. Co-Diagnostics has a consensus target price of $1.50, indicating a potential upside of 16.28%. Given Neuronetics’ stronger consensus rating and higher possible upside, research analysts plainly believe Neuronetics is more favorable than Co-Diagnostics.
Earnings & Valuation
This table compares Neuronetics and Co-Diagnostics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neuronetics | $72.07 million | 0.39 | -$30.19 million | ($0.96) | -0.97 |
| Co-Diagnostics | $9.14 million | 4.42 | -$35.33 million | ($1.32) | -0.98 |
Neuronetics has higher revenue and earnings than Co-Diagnostics. Co-Diagnostics is trading at a lower price-to-earnings ratio than Neuronetics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
53.6% of Neuronetics shares are held by institutional investors. Comparatively, 15.0% of Co-Diagnostics shares are held by institutional investors. 9.8% of Neuronetics shares are held by company insiders. Comparatively, 2.4% of Co-Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Neuronetics beats Co-Diagnostics on 12 of the 14 factors compared between the two stocks.
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.
About Co-Diagnostics
Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.
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