Natus Medical (NASDAQ:BABY) and Second Sight Medical Products (NASDAQ:EYES) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Risk and Volatility
Natus Medical has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Second Sight Medical Products has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.
This table compares Natus Medical and Second Sight Medical Products’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natus Medical||$530.89 million||2.04||-$22.93 million||$1.42||22.48|
|Second Sight Medical Products||$6.90 million||14.58||-$35.09 million||($0.52)||-1.56|
Natus Medical has higher revenue and earnings than Second Sight Medical Products. Second Sight Medical Products is trading at a lower price-to-earnings ratio than Natus Medical, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.6% of Natus Medical shares are owned by institutional investors. Comparatively, 6.1% of Second Sight Medical Products shares are owned by institutional investors. 1.7% of Natus Medical shares are owned by company insiders. Comparatively, 76.2% of Second Sight Medical Products 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.
This is a breakdown of current recommendations for Natus Medical and Second Sight Medical Products, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Second Sight Medical Products||0||0||1||0||3.00|
Natus Medical presently has a consensus target price of $36.00, indicating a potential upside of 12.78%. Second Sight Medical Products has a consensus target price of $5.00, indicating a potential upside of 517.28%. Given Second Sight Medical Products’ stronger consensus rating and higher probable upside, analysts plainly believe Second Sight Medical Products is more favorable than Natus Medical.
This table compares Natus Medical and Second Sight Medical Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Second Sight Medical Products||-553.01%||-248.94%||-153.13%|
Natus Medical beats Second Sight Medical Products on 8 of the 13 factors compared between the two stocks.
Natus Medical Company Profile
Natus Medical Incorporated provides neurology, newborn care, and hearing and balance assessment healthcare products and services worldwide. It offers products and services used for the screening, diagnosis, detection, treatment, monitoring, and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction and neurosurgical treatments, epilepsy, sleep disorders, neuromuscular diseases, and balance and mobility disorders. The company also provides computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology; and software systems for managing and tracking disorders and diseases for public health laboratories. In addition, it offers electroencephalography, long term monitoring, intensive care unit monitoring, electromyography, sleep analysis or polysomnography, and intra-operative monitoring solutions. Further, the company provides hearing screening products; diagnostic hearing assessment products to screen for/or diagnose hearing loss, or to identify abnormalities affecting the peripheral and central auditory nervous systems; balance and mobility systems to diagnose and assist in treating balance disorders; and thermoregulation products to control the incubators and warmers. Additionally, it offers jaundice management products; brain injury products; NICVIEW, a live streaming video for families with babies in the neonatal intensive care unit (NICU); essential products used in the everyday operation of NICU; and eye imaging systems and products used in the advanced science and practice of neonatal and pediatric retinal imaging. The company also provides computer-based audiological, otoneurologic, and vestibular instrumentation and sound rooms to hearing and balance care professionals. It serves hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Natus Medical Incorporated was incorporated in 1987 and is headquartered in Pleasanton, California.
Second Sight Medical Products Company Profile
Second Sight Medical Products, Inc. develops, manufactures, and markets implantable visual prosthetics that are intended to deliver artificial vision to blind individuals. It develops technologies to treat the population of sight-impaired individuals. The company offers the Orion Visual Cortical Prosthesis System, an implanted cortical stimulation device, which is intended to provide useful artificial vision to individuals who are blind due to various causes, including glaucoma, diabetic retinopathy, optic nerve injury or disease, and eye injury. It also offers Argus II Retinal Prosthesis System for treating retinitis pigmentosa. The company was founded in 1998 and is headquartered in Sylmar, California.
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