Head-To-Head Analysis: Nevro (NYSE:NVRO) & GBS (NYSE:GBS)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	60.74	-$8.31 million	($0.56)	-3.21
Nevro	$426.10 million	0.50	-$92.21 million	($2.29)	-2.55

GBS has higher earnings, but lower revenue 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.

Insider & Institutional Ownership

2.8% of GBS shares are held by institutional investors. Comparatively, 95.5% of Nevro shares are held by institutional investors. 0.3% of GBS 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 stock is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GBS and Nevro, as provided by MarketBeat.com.

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

Nevro has a consensus target price of $10.63, indicating a potential upside of 81.65%. Given Nevro’s higher possible upside, analysts clearly believe Nevro is more favorable than GBS.

Volatility and Risk

GBS has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Nevro has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

Nevro beats GBS on 7 of the 12 factors compared between the two stocks.

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.

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.