Comparing Nevro (NYSE:NVRO) and GBS (NYSE:GBS)

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

Volatility and Risk

Nevro has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nevro	-18.17%	-24.89%	-11.75%
GBS	N/A	-85.64%	-54.42%

Earnings and Valuation

This table compares Nevro and GBS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$425.17 million	0.45	-$92.21 million	($2.29)	-2.23
GBS	$440,000.00	68.36	-$8.31 million	($0.56)	-3.61

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

Institutional and Insider Ownership

95.5% of Nevro shares are owned by institutional investors. Comparatively, 2.8% of GBS shares are owned by institutional investors. 3.2% of Nevro shares are owned by insiders. Comparatively, 0.3% of GBS shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nevro and GBS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	3	11	0	0	1.79
GBS	0	0	0	0	N/A

Nevro currently has a consensus price target of $10.63, suggesting a potential upside of 108.36%. Given Nevro’s higher probable upside, research analysts clearly believe Nevro is more favorable than GBS.

Summary

Nevro beats GBS on 6 of the 11 factors compared between the two stocks.

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.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.