Surgalign (NASDAQ:SRGA) and Conformis (NASDAQ:CFMS) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Valuation and Earnings
This table compares Surgalign and Conformis' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Surgalign | $308.38 million | 0.68 | $-211,640,000.00 | ($0.16) | -11.94 |
| Conformis | $77.43 million | 1.97 | $-28,480,000.00 | ($0.44) | -1.90 |
Conformis has lower revenue, but higher earnings than Surgalign. Surgalign is trading at a lower price-to-earnings ratio than Conformis, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Surgalign has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Conformis has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
Institutional & Insider Ownership
53.5% of Surgalign shares are held by institutional investors. Comparatively, 30.2% of Conformis shares are held by institutional investors. 3.7% of Surgalign shares are held by insiders. Comparatively, 3.2% of Conformis 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 Surgalign and Conformis' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Surgalign | -56.07% | -101.34% | -18.44% |
| Conformis | -32.11% | -174.01% | -32.59% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Surgalign and Conformis, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Surgalign | 0 | 0 | 4 | 0 | 3.00 |
| Conformis | 0 | 1 | 3 | 0 | 2.75 |
Surgalign presently has a consensus price target of $4.3333, indicating a potential upside of 126.88%. Conformis has a consensus price target of $2.3333, indicating a potential upside of 179.68%. Given Conformis' higher probable upside, analysts clearly believe Conformis is more favorable than Surgalign.
Summary
Surgalign beats Conformis on 10 of the 14 factors compared between the two stocks.
