Boston Scientific vs Nevro Which Is a Better Investment?

Boston Scientific and Nevro are two prominent companies in the medical device industry, both specializing in innovative solutions for chronic pain management. Boston Scientific has been a long-established player in the market, offering a wide range of products and technologies for various medical conditions. On the other hand, Nevro has gained attention for its cutting-edge spinal cord stimulation technology. Investors are closely watching the performance of both stocks to determine which company holds the most potential for growth and investment opportunities.

Boston Scientific or Nevro?

When comparing Boston Scientific and Nevro, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Boston Scientific and Nevro.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Boston Scientific has a dividend yield of -%, while Nevro has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Boston Scientific reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.29%. On the other hand, Nevro reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Boston Scientific P/E ratio at 74.25 and Nevro's P/E ratio at -2.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Boston Scientific P/B ratio is 6.41 while Nevro's P/B ratio is 0.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Boston Scientific has seen a 5-year revenue growth of 0.38%, while Nevro's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Boston Scientific's ROE at 8.91% and Nevro's ROE at -24.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.73 for Boston Scientific and $4.20 for Nevro. Over the past year, Boston Scientific's prices ranged from $54.95 to $91.93, with a yearly change of 67.30%. Nevro's prices fluctuated between $3.95 and $22.64, with a yearly change of 473.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.