Head-To-Head Review: Sysmex (OTCMKTS:SSMXY) versus Neuronetics (NASDAQ:STIM)

Sysmex (OTCMKTS:SSMXY) and Neuronetics (NASDAQ:STIM) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sysmex	7.13%	7.28%	5.24%
Neuronetics	-24.48%	-139.83%	-27.13%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sysmex and Neuronetics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysmex	0	2	1	0	2.33
Neuronetics	1	0	1	0	2.00

Neuronetics has a consensus price target of $3.00, indicating a potential upside of 153.16%. Given Neuronetics’ higher possible upside, analysts plainly believe Neuronetics is more favorable than Sysmex.

Earnings and Valuation

This table compares Sysmex and Neuronetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysmex	$3.32 billion	1.66	$235.54 million	$0.38	23.08
Neuronetics	$149.16 million	0.55	-$39.00 million	($0.54)	-2.19

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

Institutional & Insider Ownership

53.6% of Neuronetics shares are owned by institutional investors. 8.4% of Neuronetics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Sysmex has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Summary

Sysmex beats Neuronetics on 9 of the 13 factors compared between the two stocks.

About Sysmex

Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.

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.