Head to Head Comparison: Nuvectra (NVTR) versus TearLab (TEAR)

Nuvectra (NASDAQ:NVTR) and TearLab (OTCMKTS:TEAR) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Nuvectra and TearLab, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuvectra 0 0 4 0 3.00
TearLab 0 0 0 0 N/A

Nuvectra currently has a consensus target price of $24.00, suggesting a potential upside of 54.84%. Given Nuvectra’s higher probable upside, equities research analysts clearly believe Nuvectra is more favorable than TearLab.

Profitability

This table compares Nuvectra and TearLab’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuvectra -87.94% -65.86% -36.96%
TearLab -22.03% N/A -38.48%

Insider & Institutional Ownership

77.8% of Nuvectra shares are owned by institutional investors. 4.6% of Nuvectra shares are owned by company insiders. Comparatively, 5.2% of TearLab shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Nuvectra has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, TearLab has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nuvectra and TearLab’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuvectra $31.84 million 8.57 -$44.60 million ($4.22) -3.67
TearLab $27.12 million 0.04 -$16.10 million N/A N/A

TearLab has lower revenue, but higher earnings than Nuvectra.

Summary

Nuvectra beats TearLab on 6 of the 11 factors compared between the two stocks.

Nuvectra Company Profile

Nuvectra Corporation, a neuromodulation medical device company, develops and commercializes neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets. It operates through two segments, Nuvectra and NeuroNexus. The company offers Algovita spinal cord stimulation system that is used for the treatment of chronic pain of the trunk and limbs. It also designs, manufactures, and sells neural interface technologies, including microelectrode arrays, custom designed probes, and electrode instrumentation and accessories; and develops Virtis, a sacral neuromodulation system for the treatment of chronic urinary retention and overactive bladder. The company serves hospitals, surgery centers, and medical facilities through a direct sales force and third-party distributors in the United States and Europe. Nuvectra Corporation was founded in 2008 and is headquartered in Plano, Texas.

TearLab Company Profile

TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally. It offers TearLab Osmolority System, a proprietary in vitro diagnostic tear testing platform that measures tear film osmolarity for the diagnosis of dry eye disease; and enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. Its TearLab Osmolarity System consists of TearLab disposable, a single-use microfluidic microchip; TearLab pen, a hand-held device that interfaces with the TearLab disposable; and TearLab reader, a small desktop unit that allows for the docking of the TearLab pen, as well as provides a quantitative reading for the operator. The company was formerly known as OccuLogix, Inc. TearLab Corporation was founded in 1996 and is headquartered in San Diego, California.

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