Critical Review: NeuroPace (NASDAQ:NPCE) & Microbot Medical (NASDAQ:MBOT)

Microbot Medical (NASDAQ:MBOTGet Free Report) and NeuroPace (NASDAQ:NPCEGet Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Microbot Medical and NeuroPace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microbot Medical N/A -24.44% -23.12%
NeuroPace -21.47% -105.67% -20.01%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Microbot Medical and NeuroPace, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microbot Medical 1 1 2 1 2.60
NeuroPace 1 1 4 2 2.88

Microbot Medical currently has a consensus price target of $7.50, suggesting a potential upside of 242.47%. NeuroPace has a consensus price target of $18.67, suggesting a potential upside of 18.14%. Given Microbot Medical’s higher possible upside, research analysts plainly believe Microbot Medical is more favorable than NeuroPace.

Risk & Volatility

Microbot Medical has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, NeuroPace has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Valuation and Earnings

This table compares Microbot Medical and NeuroPace”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microbot Medical N/A N/A -$13.14 million ($0.29) -7.55
NeuroPace $99.99 million 5.36 -$21.47 million ($0.66) -23.94

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

Institutional and Insider Ownership

16.3% of Microbot Medical shares are owned by institutional investors. Comparatively, 78.8% of NeuroPace shares are owned by institutional investors. 4.7% of Microbot Medical shares are owned by insiders. Comparatively, 20.5% of NeuroPace shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

NeuroPace beats Microbot Medical on 8 of the 14 factors compared between the two stocks.

About Microbot Medical

(Get Free Report)

Microbot Medical Inc., a pre-clinical medical device company, engages in the research, design, and development of robotic endoluminal surgery devices targeting the minimally invasive surgery space. The company offers LIBERTY, an endovascular robotic surgical system which allows physicians to conduct a catheter-based procedure from outside the catheterization laboratory, and avoid radiation exposure, physical strain, and the risk of cross contamination for use in cardiovascular, peripheral, and neurovascular spaces. It also provides NovaCross, an intellectual property and technology in the field of intraluminal revascularization devices with anchoring mechanism and integrated microcatheter. The company has a strategic collaboration agreement with Stryker Corporation for technology co-development. Microbot Medical Inc. was founded in 2010 and is based in Braintree, Massachusetts.

About NeuroPace

(Get Free Report)

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.

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