Comparing iCAD (NASDAQ:ICAD) and Neuronetics (NASDAQ:STIM)

iCAD (NASDAQ:ICAD) and Neuronetics (NASDAQ:STIM) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for iCAD and Neuronetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iCAD 0 0 7 0 3.00
Neuronetics 0 0 5 0 3.00

iCAD currently has a consensus target price of $23.00, indicating a potential upside of 25.00%. Neuronetics has a consensus target price of $22.50, indicating a potential upside of 39.66%. Given Neuronetics’ higher possible upside, analysts clearly believe Neuronetics is more favorable than iCAD.

Valuation & Earnings

This table compares iCAD and Neuronetics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iCAD $29.70 million 15.47 -$17.61 million ($0.43) -42.79
Neuronetics $49.24 million 8.43 -$27.45 million ($1.41) -11.43

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

Profitability

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

Net Margins Return on Equity Return on Assets
iCAD -23.41% -21.51% -12.87%
Neuronetics -45.39% -49.29% -23.35%

Institutional & Insider Ownership

50.4% of iCAD shares are owned by institutional investors. Comparatively, 80.6% of Neuronetics shares are owned by institutional investors. 12.4% of iCAD shares are owned by insiders. Comparatively, 4.9% of Neuronetics shares are owned 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.

Volatility and Risk

iCAD has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 2.67, meaning that its stock price is 167% more volatile than the S&P 500.

Summary

iCAD beats Neuronetics on 8 of the 13 factors compared between the two stocks.

iCAD Company Profile

iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States. It operates through two segments, Cancer Detection and Cancer Therapy. The company offers PowerLook platform, which hosts the AI algorithm solutions and manages the communications between imaging acquisition systems, and image storage and review systems; SecondLook, a machine learning-based cancer detection algorithm that analyzes 2D full-field digital mammography images to identify and mark suspicious masses and calcifications; and automated density assessment solutions, which provides automated, consistent, and standardized density assessment. It also offers ProFound AI, a deep-learning algorithm designed to detect malignant soft-tissue densities and calcifications in digital breast tomosynthesis; ProFound AI Risk, a tool that provides breast cancer risk estimation based on a screening mammogram; and magnetic resonance imaging applications, a tool to detect breast and prostate cancer. In addition, the company offers VeraLook, a solution designed to support the detection of colonic polyps in conjunction with CT Colonography. Further, it provides Xoft Axxent electronic brachytherapy systems for the treatment of early stage breast, non-melanoma skin, and gynecological cancers to university research and community hospitals, cancer care clinics, veterinary facilities, and dermatology offices. The company serves healthcare centers through direct sales organizations, as well as through various original equipment manufacturer partners, distributors, and resellers. It also exports its products in Europe, Taiwan, Canada, China, and internationally. The company was formerly known as Howtek, Inc. and changed its name to iCAD, Inc. in June 2002. iCAD, Inc. was incorporated in 1984 and is headquartered in Nashua, New Hampshire.

Neuronetics Company Profile

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric 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. Neuronetics, Inc. was incorporated in 2003 and is headquartered in Malvern, Pennsylvania.

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