Obalon Therapeutics (NASDAQ: OBLN) and Amedica (NASDAQ:AMDA) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
This table compares Obalon Therapeutics and Amedica’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Obalon Therapeutics has a beta of -3.3, meaning that its share price is 430% less volatile than the S&P 500. Comparatively, Amedica has a beta of -1.35, meaning that its share price is 235% less volatile than the S&P 500.
Institutional and Insider Ownership
42.7% of Obalon Therapeutics shares are held by institutional investors. Comparatively, 5.6% of Amedica shares are held by institutional investors. 16.4% of Obalon Therapeutics shares are held by company insiders. Comparatively, 0.1% of Amedica shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Obalon Therapeutics and Amedica, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Obalon Therapeutics presently has a consensus target price of $7.00, suggesting a potential upside of 69.08%. Amedica has a consensus target price of $60.00, suggesting a potential upside of 2,784.62%. Given Amedica’s higher possible upside, analysts clearly believe Amedica is more favorable than Obalon Therapeutics.
Valuation and Earnings
This table compares Obalon Therapeutics and Amedica’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Obalon Therapeutics||$9.91 million||7.36||-$34.76 million||($2.08)||-1.99|
|Amedica||$15.23 million||0.42||-$14.76 million||($1.93)||-1.08|
Amedica has higher revenue and earnings than Obalon Therapeutics. Obalon Therapeutics is trading at a lower price-to-earnings ratio than Amedica, indicating that it is currently the more affordable of the two stocks.
Amedica beats Obalon Therapeutics on 9 of the 14 factors compared between the two stocks.
Obalon Therapeutics 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.
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.
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