Critical Comparison: RTI Surgical (RTIX) and Obalon Therptcs (OBLN)
RTI Surgical (NASDAQ: RTIX) and Obalon Therptcs (NASDAQ:OBLN) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
This is a summary of recent ratings and recommmendations for RTI Surgical and Obalon Therptcs, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Obalon Therptcs has a consensus price target of $15.25, indicating a potential upside of 54.51%. Given Obalon Therptcs’ higher probable upside, analysts plainly believe Obalon Therptcs is more favorable than RTI Surgical.
Insider and Institutional Ownership
70.0% of RTI Surgical shares are held by institutional investors. Comparatively, 45.0% of Obalon Therptcs shares are held by institutional investors. 4.9% of RTI Surgical shares are held by insiders. Comparatively, 16.4% of Obalon Therptcs shares are held 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.
This table compares RTI Surgical and Obalon Therptcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares RTI Surgical and Obalon Therptcs’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RTI Surgical||$279.95 million||1.02||$15.45 million||($0.38)||-12.76|
|Obalon Therptcs||$4.98 million||33.34||-$27.12 million||($6.90)||-1.43|
RTI Surgical has higher revenue and earnings than Obalon Therptcs. RTI Surgical is trading at a lower price-to-earnings ratio than Obalon Therptcs, indicating that it is currently the more affordable of the two stocks.
RTI Surgical beats Obalon Therptcs on 7 of the 11 factors compared between the two stocks.
RTI Surgical Company Profile
RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The Company uses natural tissues, metals and synthetics process to produce its products. The Company’s business primarily consists of six categories, such as spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic (BGS and general orthopedic), dental and surgical specialties. It processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing BIOCLEANSE, TUTOPLAST and CANCELLE SP sterilization processes, and manufactures metal and synthetic implants for distribution to hospitals and surgeons. The Company distributes its implants and services in approximately 50 states and in over 45 countries across the world.
Obalon Therptcs Company Profile
Obalon Therapeutics, Inc. is a United States-based commercial-stage medical device company focused on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. The Company’s product, Obalon balloon system, is a swallowable, gas-filled intragastric balloon designed to provide weight loss in obese patients. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. All balloons must be removed six months after the first balloon is placed. The Obalon balloon system intends to provide patients and physicians with a reversible and repeatable weight loss solution in an outpatient setting, without altering patient anatomy or requiring surgery. The Company has received Premarket approval (PMA) for its Obalon balloon system based on the results of its United States pivotal clinical trial, referred to as the SMART trial.
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