Surgalign (NASDAQ:SRGA) and Sientra (NASDAQ:SIEN) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Insider and Institutional Ownership
53.5% of Surgalign shares are held by institutional investors. Comparatively, 71.0% of Sientra shares are held by institutional investors. 3.7% of Surgalign shares are held by insiders. Comparatively, 2.8% of Sientra shares are held by 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 and Risk
Surgalign has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Sientra has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.
Profitability
This table compares Surgalign and Sientra's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Surgalign | -56.07% | -101.34% | -18.44% |
| Sientra | -123.88% | -174.05% | -38.97% |
Earnings & Valuation
This table compares Surgalign and Sientra's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Surgalign | $308.38 million | 0.55 | $-211,640,000.00 | ($0.16) | -13.00 |
| Sientra | $83.70 million | 2.84 | $-106,820,000.00 | ($2.29) | -2.06 |
Sientra has lower revenue, but higher earnings than Surgalign. Surgalign is trading at a lower price-to-earnings ratio than Sientra, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Surgalign and Sientra, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Surgalign | 0 | 0 | 2 | 0 | 3.00 |
| Sientra | 0 | 0 | 6 | 0 | 3.00 |
Surgalign presently has a consensus price target of $5.00, indicating a potential upside of 140.38%. Sientra has a consensus price target of $7.20, indicating a potential upside of 52.70%. Given Surgalign's higher possible upside, equities research analysts clearly believe Surgalign is more favorable than Sientra.
Summary
Surgalign beats Sientra on 9 of the 13 factors compared between the two stocks.
