Financial Review: Nevro (NYSE:NVRO) and Endologix (OTCMKTS:ELGXQ)

Nevro (NYSE:NVRO) and Endologix (OTCMKTS:ELGXQ) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Nevro and Endologix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	3	10	0	0	1.77
Endologix	0	0	0	0	0.00

Nevro presently has a consensus price target of $6.30, suggesting a potential upside of 69.81%. Given Nevro’s stronger consensus rating and higher possible upside, research analysts plainly believe Nevro is more favorable than Endologix.

Institutional & Insider Ownership

95.5% of Nevro shares are held by institutional investors. 3.2% of Nevro shares are held by company insiders. Comparatively, 1.3% of Endologix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$419.15 million	0.33	-$92.21 million	($1.89)	-1.96
Endologix	N/A	N/A	N/A	N/A	N/A

Endologix has lower revenue, but higher earnings than Nevro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nevro	-16.54%	-23.52%	-10.83%
Endologix	N/A	N/A	N/A

Summary

Nevro beats Endologix on 5 of the 8 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 Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California. On July 5, 2020, Endologix, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. It is in joint administration with TriVascular Sales LLC.