Amedica (NASDAQ: AMDA) and RTI Surgical (NASDAQ:RTIX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

62.5% of Amedica shares are held by institutional investors. Comparatively, 69.9% of RTI Surgical shares are held by institutional investors. 0.1% of Amedica shares are held by insiders. Comparatively, 4.9% of RTI Surgical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Amedica and RTI Surgical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amedica 0 2 0 0 2.00
RTI Surgical 0 0 0 0 N/A

Amedica currently has a consensus target price of $60.00, indicating a potential upside of 1,590.14%. Given Amedica’s higher possible upside, equities research analysts clearly believe Amedica is more favorable than RTI Surgical.

Profitability

This table compares Amedica and RTI Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amedica -71.07% -73.86% -36.96%
RTI Surgical 1.01% 2.29% 1.06%

Volatility and Risk

Amedica has a beta of -2.08, meaning that its stock price is 308% less volatile than the S&P 500. Comparatively, RTI Surgical has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares Amedica and RTI Surgical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amedica $15.23 million 0.70 -$14.76 million N/A N/A
RTI Surgical $272.86 million 0.98 -$14.39 million ($0.07) -62.86

RTI Surgical has higher revenue and earnings than Amedica.

Summary

RTI Surgical beats Amedica on 9 of the 10 factors compared between the two stocks.

Amedica Company Profile

Amedica Corporation is a commercial biomaterial company. The Company is a vertically integrated silicon nitride orthopedic medical device manufacturer. It is focused on using its silicon nitride ceramic technology platform to develop, manufacture and sell a range of medical devices. It is also engaged in developing wear- and corrosion-resistant implant components for hip and knee arthroplasty. The Company markets its Valeo family of silicon nitride interbody spinal fusion devices in the United States, Europe and Brazil for use in the cervical and thoracolumbar areas of the spine. In addition to its silicon nitride-based spinal fusion products, it markets a line of non-silicon nitride spinal surgery products, which allows the Company to provide surgeons and hospitals with a solution for spinal procedures. Its Valeo interbody spinal fusion devices include Anterior Lumbar, Posterior Lumbar, Oblique Lumbar, Transforaminal Lumbar, Lateral Lumbar, Cervical and Corpectomy.

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.

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