Obalon Therapeutics (NASDAQ: OBLN) and AtriCure (NASDAQ:ATRC) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Volatility & Risk
Obalon Therapeutics has a beta of -2.12, indicating that its stock price is 312% less volatile than the S&P 500. Comparatively, AtriCure has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
This table compares Obalon Therapeutics and AtriCure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Obalon Therapeutics and AtriCure’s top-line 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||6.59||-$34.76 million||($2.08)||-1.79|
|AtriCure||$174.72 million||4.10||-$26.89 million||($0.83)||-24.63|
AtriCure has higher revenue and earnings than Obalon Therapeutics. AtriCure is trading at a lower price-to-earnings ratio than Obalon Therapeutics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Obalon Therapeutics and AtriCure, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Obalon Therapeutics currently has a consensus price target of $9.25, suggesting a potential upside of 148.66%. AtriCure has a consensus price target of $24.80, suggesting a potential upside of 21.33%. Given Obalon Therapeutics’ higher possible upside, equities analysts plainly believe Obalon Therapeutics is more favorable than AtriCure.
Insider & Institutional Ownership
42.7% of Obalon Therapeutics shares are owned by institutional investors. Comparatively, 86.2% of AtriCure shares are owned by institutional investors. 16.4% of Obalon Therapeutics shares are owned by company insiders. Comparatively, 8.7% of AtriCure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
AtriCure beats Obalon Therapeutics on 10 of the 14 factors compared between the two stocks.
Obalon Therapeutics Company Profile
Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. It offers the Obalon balloon system designed to provide weight loss in obese patients. Obalon Therapeutics, Inc. was founded in 2008 and is headquartered in Carlsbad, California.
AtriCure Company Profile
AtriCure, Inc. provides atrial fibrillation solutions to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy; and EPi-Sense guided coagulation system used for the temporary cardiac signal sensing and recording during surgery. It also provides SUBTLE cannula, an access device and conduit for the ablation device and endoscope to enable a closed chest endoscopic approach; multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable physicians to create an expanded cardiac ablation lesion set. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. AtriCure sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.
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