Eargo (NASDAQ:EAR) and Establishment Labs (NASDAQ:ESTA) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Insider & Institutional Ownership
54.8% of Establishment Labs shares are owned by institutional investors. 2.6% of Establishment Labs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Eargo and Establishment Labs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Eargo | 0 | 0 | 4 | 0 | 3.00 |
Establishment Labs | 0 | 1 | 3 | 0 | 2.75 |
Eargo currently has a consensus price target of $48.00, indicating a potential upside of 2.85%. Establishment Labs has a consensus price target of $46.00, indicating a potential downside of 31.09%. Given Eargo's stronger consensus rating and higher probable upside, equities research analysts plainly believe Eargo is more favorable than Establishment Labs.
Valuation and Earnings
This table compares Eargo and Establishment Labs' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Eargo | N/A | N/A | N/A | N/A | N/A |
Establishment Labs | $89.57 million | 17.65 | $-38,150,000.00 | ($1.86) | -35.89 |
Eargo has higher earnings, but lower revenue than Establishment Labs.
Profitability
This table compares Eargo and Establishment Labs' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Eargo | N/A | N/A | N/A |
Establishment Labs | -46.40% | -49.51% | -24.21% |
Summary
Eargo beats Establishment Labs on 6 of the 9 factors compared between the two stocks.