Surgalign (NASDAQ:SRGA) and Lakeland Industries (NASDAQ:LAKE) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Risk and Volatility
Surgalign has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.
Valuation & Earnings
This table compares Surgalign and Lakeland Industries' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Surgalign | $308.38 million | 0.73 | $-211,640,000.00 | ($0.16) | -12.81 |
| Lakeland Industries | $107.81 million | 2.09 | $3.28 million | $0.45 | 62.40 |
Lakeland Industries has lower revenue, but higher earnings than Surgalign. Surgalign is trading at a lower price-to-earnings ratio than Lakeland Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Surgalign and Lakeland Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Surgalign | -56.07% | -101.34% | -18.44% |
| Lakeland Industries | 18.93% | 28.75% | 24.67% |
Insider & Institutional Ownership
53.5% of Surgalign shares are owned by institutional investors. Comparatively, 70.8% of Lakeland Industries shares are owned by institutional investors. 3.7% of Surgalign shares are owned by company insiders. Comparatively, 4.9% of Lakeland Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Surgalign and Lakeland Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Surgalign | 0 | 0 | 4 | 0 | 3.00 |
| Lakeland Industries | 0 | 0 | 2 | 0 | 3.00 |
Surgalign currently has a consensus price target of $4.3333, indicating a potential upside of 111.38%. Lakeland Industries has a consensus price target of $31.3333, indicating a potential upside of 11.59%. Given Surgalign's higher possible upside, equities research analysts plainly believe Surgalign is more favorable than Lakeland Industries.
Summary
Lakeland Industries beats Surgalign on 9 of the 13 factors compared between the two stocks.
