Critical Review: NeuroPace (NASDAQ:NPCE) & Perspective Therapeutics (NYSE:CATX)

NeuroPace (NASDAQ:NPCE) and Perspective Therapeutics (NYSE:CATX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for NeuroPace and Perspective Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroPace	0	1	6	0	2.86
Perspective Therapeutics	0	1	8	0	2.89

NeuroPace currently has a consensus price target of $14.50, indicating a potential upside of 30.16%. Perspective Therapeutics has a consensus price target of $15.14, indicating a potential upside of 433.20%. Given Perspective Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Perspective Therapeutics is more favorable than NeuroPace.

Insider and Institutional Ownership

78.8% of NeuroPace shares are owned by institutional investors. Comparatively, 54.7% of Perspective Therapeutics shares are owned by institutional investors. 22.2% of NeuroPace shares are owned by company insiders. Comparatively, 3.5% of Perspective Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares NeuroPace and Perspective Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroPace	-36.74%	-205.41%	-28.29%
Perspective Therapeutics	-4,096.66%	-27.40%	-23.16%

Risk and Volatility

NeuroPace has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Perspective Therapeutics has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares NeuroPace and Perspective Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroPace	$76.45 million	4.35	-$32.96 million	($1.00)	-11.14
Perspective Therapeutics	$1.43 million	134.23	-$46.51 million	N/A	N/A

NeuroPace has higher revenue and earnings than Perspective Therapeutics.

About NeuroPace

NeuroPace, Inc. operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely. Its RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. The company sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. NeuroPace, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.

About Perspective Therapeutics

Perspective Therapeutics, Inc., together with its subsidiaries, develops precision-targeted alpha therapies (TAT) for oncology that treats cancer patients across multiple tumor types comprising metastatic disease. The company discovers, designs, and develop its initial programs candidates consists of VMT-a-NET, that is currently in Phase 1/2a clinical trials for patients with unresectable or metastatic somatostatin receptor type 2 (SSTR2) expressing tumors that have not previously received peptide-targeted radiopharmaceutical therapy, such as Lutathera, a beta-emitting therapy; and VMT01, which is currently in Phase 1/2a clinical trials for second-line or later treatment of patients with progressive melanocortin 1 receptor (MC1R) positive metastatic melanoma. Perspective Therapeutics, Inc. has a clinical trial collaboration agreement with Bristol Myers Squibb to evaluate the safety and tolerability of [212Pb] VMT01 in combination with nivolumab in patients with histologically confirmed melanoma and positive MC1R imaging scans. The company was formerly known as Isoray, Inc. and changed its name to Perspective Therapeutics, Inc. in February 2022. Perspective Therapeutics, Inc. was founded in 1998 and is headquartered in Seattle, Washington.