Head-To-Head Contrast: Neogen (NASDAQ:NEOG) versus AtriCure (NASDAQ:ATRC)

AtriCure (NASDAQ:ATRC) and Neogen (NASDAQ:NEOG) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility and Risk

AtriCure has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Neogen has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Valuation and Earnings

This table compares AtriCure and Neogen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtriCure	$534.53 million	5.41	-$11.45 million	$0.30	189.47
Neogen	$870.40 million	2.82	-$7.90 million	($0.25)	-44.92

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

Insider and Institutional Ownership

99.1% of AtriCure shares are owned by institutional investors. Comparatively, 96.7% of Neogen shares are owned by institutional investors. 4.0% of AtriCure shares are owned by company insiders. Comparatively, 0.5% of Neogen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares AtriCure and Neogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AtriCure	2.52%	4.01%	3.03%
Neogen	-6.35%	3.29%	2.06%

Analyst Recommendations

This is a summary of current recommendations and price targets for AtriCure and Neogen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtriCure	1	4	6	1	2.58
Neogen	1	1	3	0	2.40

AtriCure currently has a consensus price target of $62.30, indicating a potential upside of 9.61%. Neogen has a consensus price target of $12.67, indicating a potential upside of 12.79%. Given Neogen’s higher probable upside, analysts clearly believe Neogen is more favorable than AtriCure.

Summary

AtriCure beats Neogen on 11 of the 15 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. is a medical technology company that develops and sells products for the treatment of atrial fibrillation and other conditions addressed through cardiac surgery. Its technologies are used by surgeons and other medical professionals in hospital settings. The company’s products include surgical ablation systems designed to treat irregular heart rhythms and devices for managing the left atrial appendage, a small pouch in the heart associated with stroke risk in some patients with atrial fibrillation.

About Neogen

Neogen Corporation develops and markets products and services focused on food and animal safety. Its offerings help food producers, processors, laboratories and livestock producers detect risks, support animal health and meet safety and quality requirements. Neogen’s food safety products include tests for foodborne pathogens, allergens, toxins and sanitation indicators, as well as related laboratory supplies and services. Its animal safety offerings include veterinary instruments, animal health products, biosecurity solutions and genetic testing services for livestock.