Nevro (NYSE:NVRO) and Adynxx (OTCMKTS:ADYX) Critical Comparison

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

Volatility & Risk

Nevro has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Adynxx has a beta of 2.67, meaning that its share price is 167% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nevro	$425.17 million	0.51	-$92.21 million	($1.89)	-3.03
Adynxx	N/A	N/A	N/A	N/A	N/A

Adynxx has lower revenue, but higher earnings than Nevro.

Institutional and Insider Ownership

95.5% of Nevro shares are held by institutional investors. 3.2% of Nevro shares are held by insiders. Comparatively, 17.4% of Adynxx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Nevro and Adynxx’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%
Adynxx	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Nevro and Adynxx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nevro	2	11	1	0	1.93
Adynxx	0	0	0	0	0.00

Nevro currently has a consensus target price of $6.43, indicating a potential upside of 12.03%. Given Nevro’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Nevro is more favorable than Adynxx.

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 Adynxx

Adynxx, Inc., a clinical stage biopharmaceutical company, focuses on the development and marketing of transcription factor decoy technologies for the treatment of pain and inflammatory diseases. It is involved in the development of AYX platform of transcription factor decoys, including brivoligide, which is in Phase II clinical development for the reduction of postoperative pain; and AYX2, a pre-clinical candidate intended for the treatment of focal chronic pain. The company was founded in 2007 and is headquartered in San Francisco, California.