Natera (NASDAQ:NTRA) and Establishment Labs (NASDAQ:ESTA) Head-To-Head Analysis

Establishment Labs (NASDAQ:ESTA) and Natera (NASDAQ:NTRA) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

Establishment Labs has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Natera has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Insider & Institutional Ownership

72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 99.9% of Natera shares are owned by institutional investors. 11.1% of Establishment Labs shares are owned by insiders. Comparatively, 5.6% of Natera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Establishment Labs and Natera’s 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%
Natera	-14.61%	-25.07%	-17.74%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Establishment Labs and Natera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	6	0	2.63
Natera	1	3	13	1	2.78

Establishment Labs presently has a consensus price target of $78.86, suggesting a potential upside of 13.45%. Natera has a consensus price target of $249.20, suggesting a potential upside of 18.34%. Given Natera’s stronger consensus rating and higher probable upside, analysts plainly believe Natera is more favorable than Establishment Labs.

Earnings and Valuation

This table compares Establishment Labs and Natera”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$190.97 million	10.58	-$84.60 million	($2.84)	-24.48
Natera	$1.70 billion	17.16	-$190.43 million	($2.29)	-91.96

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

Summary

Natera beats Establishment Labs on 12 of the 15 factors compared between the two stocks.

About Establishment Labs

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 Natera

Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.