Financial Contrast: Apyx Medical (NASDAQ:APYX) and Nevro (NYSE:NVRO)

Apyx Medical (NASDAQ:APYX) and Nevro (NYSE:NVRO) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Volatility & Risk

Apyx Medical has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Nevro has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Apyx Medical and Nevro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apyx Medical	-45.20%	-76.16%	-32.98%
Nevro	-19.17%	-27.48%	-13.40%

Institutional and Insider Ownership

55.3% of Apyx Medical shares are held by institutional investors. Comparatively, 95.5% of Nevro shares are held by institutional investors. 16.8% of Apyx Medical shares are held by company insiders. Comparatively, 3.2% of Nevro shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Apyx Medical and Nevro’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apyx Medical	$52.35 million	0.91	-$18.71 million	($0.66)	-2.09
Nevro	$425.17 million	0.87	-$92.21 million	($2.29)	-4.40

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

Analyst Ratings

This is a summary of current recommendations for Apyx Medical and Nevro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apyx Medical	0	0	2	0	3.00
Nevro	2	10	1	0	1.92

Apyx Medical currently has a consensus target price of $4.75, suggesting a potential upside of 244.20%. Nevro has a consensus target price of $17.71, suggesting a potential upside of 75.67%. Given Apyx Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Apyx Medical is more favorable than Nevro.

Summary

Apyx Medical beats Nevro on 9 of the 14 factors compared between the two stocks.

About Apyx Medical

Apyx Medical Corporation, an energy technology company, engages in the design, development, and manufacture of medical devices in the United States and internationally. The company operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). It offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. The company's Helium Plasma Technology products are marketed and sold under the Renuvion name in the cosmetic surgery market and under the J-Plasma name in the hospital surgical market. It also develops and manufactures various hand pieces for open and laparoscopic procedures; and OEM generators, as well as related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.

About Nevro

Nevro Corp., a medical device company, engages in the provision of products for patients suffering from chronic pain in the United States and internationally. The company provides HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS implantable pulse generator (IPG) system, an evidence-based neuromodulation system for the treatment of chronic back and leg pain through paresthesia-free 10 kHz therapy, as well as offers Senza II and Senza Omnia SCS IPG systems. It also offers Senza HFX iQ platform, that includes HFX iQ implantable pulse generator, HFX trial stimulator, and HFX iQ patient remote, as well as HFX App, a patient remote control and the wireless trialing system; and provides sacroiliac joint fusion devices under NevroV1, NevroFix, and NevroPro brands. In addition, the company offers surpass surgical and percutaneous leads. It sells its products through its direct sales force, and a network of sales agents and independent distributors. The company was incorporated in 2006 and is headquartered in Redwood City, California.