Reshape Lifesciences (NASDAQ: RSLS) and Intersect ENT (NASDAQ:XENT) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Earnings & Valuation
This table compares Reshape Lifesciences and Intersect ENT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Reshape Lifesciences||$790,000.00||53.47||-$23.36 million||($5.89)||-0.24|
|Intersect ENT||$96.30 million||11.90||-$16.36 million||($0.57)||-67.46|
Volatility and Risk
Reshape Lifesciences has a beta of 2.68, indicating that its share price is 168% more volatile than the S&P 500. Comparatively, Intersect ENT has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Reshape Lifesciences and Intersect ENT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Reshape Lifesciences currently has a consensus price target of $11.00, suggesting a potential upside of 680.14%. Intersect ENT has a consensus price target of $33.43, suggesting a potential downside of 13.06%. Given Reshape Lifesciences’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Reshape Lifesciences is more favorable than Intersect ENT.
Insider & Institutional Ownership
20.8% of Reshape Lifesciences shares are owned by institutional investors. Comparatively, 84.5% of Intersect ENT shares are owned by institutional investors. 26.4% of Reshape Lifesciences shares are owned by company insiders. Comparatively, 13.7% of Intersect ENT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Reshape Lifesciences and Intersect ENT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Intersect ENT beats Reshape Lifesciences on 8 of the 14 factors compared between the two stocks.
About Reshape Lifesciences
ReShape Lifesciences Inc., formerly EnteroMedics Inc., is a medical device company. The Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. The Company’s neuroblocking technology, which is referred to as VBLOC therapy, is designed to intermittently block the vagus nerve. The Company’s initial product is the Maestro Rechargeable System, which uses VBLOC therapy to limit the expansion of the stomach, help control hunger sensations between meals, reduce the frequency and intensity of stomach contractions and produce a feeling of early and prolonged fullness. The Company’s VBLOC therapy is designed to block the gastrointestinal effects of the vagus nerve by replicating a vagotomy using high-frequency, low-energy electrical impulses to intermittently interrupt naturally occurring neural impulses on the vagus nerve between the brain and the digestive system.
About Intersect ENT
Intersect ENT, Inc. is a commercial-stage drug-device company. The Company develops drugs for patients with ear, nose and throat (ENT) conditions. The Company has developed a drug releasing bioabsorbable implant technology that enables targeted and sustained release of therapeutic agents. This targeted drug delivery technology is designed to allow ENT physicians to manage patient care. The Company’s commercial products are the PROPEL and PROPEL mini drug-releasing implants for patients undergoing sinus surgery to treat chronic sinusitis. The Company is building a portfolio of products based on its drug releasing bio-absorbable implant technology that are designed to provide localized drug delivery to treat patients across the continuum of care in chronic sinusitis. The Company markets PROPEL, which is indicated for use following ethmoid sinus surgery, and PROPEL Mini, which is indicated for use following ethmoid and/or frontal sinus surgery.
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