Critical Analysis: Co-Diagnostics (NASDAQ:CODX) vs. Establishment Labs (NASDAQ:ESTA)

Establishment Labs (NASDAQ:ESTAGet Free Report) and Co-Diagnostics (NASDAQ:CODXGet Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Establishment Labs and Co-Diagnostics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Establishment Labs -43.45% -235.45% -22.83%
Co-Diagnostics -6,347.34% -70.26% -61.19%

Insider and Institutional Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 15.0% of Co-Diagnostics shares are held by institutional investors. 11.4% of Establishment Labs shares are held by insiders. Comparatively, 5.4% of Co-Diagnostics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Establishment Labs has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Co-Diagnostics has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Establishment Labs and Co-Diagnostics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Establishment Labs 1 1 6 0 2.63
Co-Diagnostics 1 2 1 0 2.00

Establishment Labs currently has a consensus target price of $78.86, indicating a potential upside of 5.20%. Co-Diagnostics has a consensus target price of $55.00, indicating a potential upside of 2,273.25%. Given Co-Diagnostics’ higher probable upside, analysts clearly believe Co-Diagnostics is more favorable than Establishment Labs.

Earnings & Valuation

This table compares Establishment Labs and Co-Diagnostics”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Establishment Labs $166.02 million 13.12 -$84.60 million ($2.84) -26.39
Co-Diagnostics $507,892.00 10.29 -$37.64 million ($29.73) -0.08

Co-Diagnostics has lower revenue, but higher earnings than Establishment Labs. Establishment Labs is trading at a lower price-to-earnings ratio than Co-Diagnostics, indicating that it is currently the more affordable of the two stocks.

Summary

Establishment Labs beats Co-Diagnostics on 9 of the 14 factors compared between the two stocks.

About Establishment Labs

(Get Free Report)

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

About Co-Diagnostics

(Get Free Report)

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

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