Head-To-Head Survey: Neuronetics (NASDAQ:STIM) vs. INVO Bioscience (NASDAQ:INVO)

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

Profitability

This table compares Neuronetics and INVO Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neuronetics	-50.09%	-141.24%	-32.77%
INVO Bioscience	-122.79%	N/A	-36.94%

Insider & Institutional Ownership

53.6% of Neuronetics shares are owned by institutional investors. Comparatively, 12.0% of INVO Bioscience shares are owned by institutional investors. 9.8% of Neuronetics shares are owned by company insiders. Comparatively, 3.5% of INVO Bioscience shares are owned by company 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.

Valuation and Earnings

This table compares Neuronetics and INVO Bioscience”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neuronetics	$71.35 million	0.47	-$30.19 million	($1.23)	-0.90
INVO Bioscience	$5.77 million	0.63	-$8.03 million	N/A	N/A

INVO Bioscience has lower revenue, but higher earnings than Neuronetics.

Risk & Volatility

Neuronetics has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, INVO Bioscience has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Neuronetics and INVO Bioscience, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neuronetics	0	1	3	0	2.75
INVO Bioscience	0	0	0	0	0.00

Neuronetics presently has a consensus target price of $4.67, suggesting a potential upside of 320.42%. Given Neuronetics’ stronger consensus rating and higher probable upside, research analysts plainly believe Neuronetics is more favorable than INVO Bioscience.

Summary

Neuronetics beats INVO Bioscience on 9 of the 12 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 INVO Bioscience

INVO Bioscience, Inc., together with its subsidiary, a healthcare services fertility company, provides assisted reproductive technology solutions worldwide. It offers INVOcell, a medical device that allows fertilization and early embryo development to take place in vivo within the woman’s body. The company was founded in 2007 and is based in Sarasota, Florida.