Financial Survey: Fractyl Health (NASDAQ:GUTS) vs. NeuroMetrix (NASDAQ:NURO)

NeuroMetrix (NASDAQ:NURO) and Fractyl Health (NASDAQ:GUTS) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares NeuroMetrix and Fractyl Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroMetrix	$3.77 million	2.44	-$6.53 million	($4.59)	-0.97
Fractyl Health	$93,000.00	575.99	-$77.09 million	($1.53)	-0.72

NeuroMetrix has higher revenue and earnings than Fractyl Health. NeuroMetrix is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NeuroMetrix and Fractyl Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeuroMetrix	-203.71%	-42.56%	-39.26%
Fractyl Health	-64,849.48%	N/A	-57.21%

Institutional and Insider Ownership

19.4% of NeuroMetrix shares are held by institutional investors. 7.3% of NeuroMetrix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

NeuroMetrix has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for NeuroMetrix and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroMetrix	0	0	0	0	0.00
Fractyl Health	0	0	1	0	3.00

Fractyl Health has a consensus target price of $10.00, indicating a potential upside of 813.24%. Given Fractyl Health’s stronger consensus rating and higher probable upside, analysts plainly believe Fractyl Health is more favorable than NeuroMetrix.

About NeuroMetrix

NeuroMetrix, Inc., a commercial stage neurotechnology company, engages in designing, building, and marketing medical devices that stimulate and analyze nerve response for diagnostic and therapeutic purposes in the United States, Europe, Japan, and China. Its marketed products include DPNCheck, a nerve conduction test that is used to evaluate peripheral neuropathies, such as diabetic peripheral neuropathy; Quell, a wearable device for symptomatic relief and management of chronic pain; and ADVANCE system offers services to device and provide disposable electrodes to a customer base of hand surgeons and manufacturers for industrial health use. The company offers its products to managed care organizations, endocrinologists, podiatrists, and primary care physicians; occupational health, primary care, internal medicine, orthopedic, and hand surgeons; and pain medicine physicians, neurologists, physical medicine and rehabilitation physicians, and neurosurgeons. NeuroMetrix, Inc. was incorporated in 1996 and is headquartered in Woburn, Massachusetts.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.