Endologix (NASDAQ: ELGX) and Smith & Nephew SNATS (NYSE:SNN) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Endologix and Smith & Nephew SNATS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endologix | -40.77% | -46.32% | -13.67% |
| Smith & Nephew SNATS | N/A | N/A | N/A |
Valuation and Earnings
This table compares Endologix and Smith & Nephew SNATS’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Endologix | $190.75 million | 1.85 | -$54.38 million | ($0.94) | -4.49 |
| Smith & Nephew SNATS | $4.68 billion | 3.36 | $1.32 billion | N/A | N/A |
Smith & Nephew SNATS has higher revenue and earnings than Endologix.
Dividends
Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. Endologix does not pay a dividend. Smith & Nephew SNATS has increased its dividend for 4 consecutive years.
Analyst Ratings
This is a summary of recent ratings and price targets for Endologix and Smith & Nephew SNATS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endologix | 0 | 10 | 0 | 0 | 2.00 |
| Smith & Nephew SNATS | 0 | 4 | 2 | 0 | 2.33 |
Endologix presently has a consensus target price of $6.33, suggesting a potential upside of 50.08%. Given Endologix’s higher probable upside, research analysts clearly believe Endologix is more favorable than Smith & Nephew SNATS.
Risk and Volatility
Endologix has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Smith & Nephew SNATS has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
6.4% of Smith & Nephew SNATS shares are held by institutional investors. 4.1% of Endologix shares are held by insiders. Comparatively, 1.0% of Smith & Nephew SNATS shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Smith & Nephew SNATS beats Endologix on 12 of the 14 factors compared between the two stocks.
Endologix Company Profile
Endologix, Inc. is engaged in developing, manufacturing, marketing and selling medical devices for the treatment of aortic disorders. The Company’s products are intended for the treatment of abdominal aortic aneurysms (AAA). The AAA products are built on one of two platforms, including traditional minimally invasive endovascular repair (EVAR) or endovascular sealing (EVAS), its solution for sealing the aneurysm sac while maintaining blood flow through two blood flow lumens. The EVAR products include the Endologix AFX Endovascular AAA System (AFX), the VELA Proximal Endograft (VELA) and the Endologix Powerlink with Intuitrak Delivery System (Intuitrak). The EVAS product is the Nellix EndoVascular Aneurysm Sealing System (Nellix EVAS System). It offers accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, snares, and catheter introducer sheaths.
Smith & Nephew SNATS Company Profile
Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.
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