Nuvectra (NASDAQ: OBLN) and Obalon Therapeutics (NASDAQ:OBLN) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
This table compares Nuvectra and Obalon Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nuvectra has a beta of -2.55, suggesting that its stock price is 355% less volatile than the S&P 500. Comparatively, Obalon Therapeutics has a beta of -2.81, suggesting that its stock price is 381% less volatile than the S&P 500.
Earnings and Valuation
This table compares Nuvectra and Obalon Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nuvectra||$31.84 million||7.99||-$44.60 million||($4.22)||-4.23|
|Obalon Therapeutics||$9.91 million||3.20||-$34.76 million||($2.08)||-0.86|
Obalon Therapeutics has lower revenue, but higher earnings than Nuvectra. Nuvectra 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 summary of current ratings for Nuvectra and Obalon Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nuvectra currently has a consensus target price of $23.67, suggesting a potential upside of 32.59%. Obalon Therapeutics has a consensus target price of $7.80, suggesting a potential upside of 338.20%. Given Obalon Therapeutics’ higher possible upside, analysts clearly believe Obalon Therapeutics is more favorable than Nuvectra.
Institutional and Insider Ownership
72.6% of Nuvectra shares are held by institutional investors. Comparatively, 33.8% of Obalon Therapeutics shares are held by institutional investors. 4.6% of Nuvectra shares are held by company insiders. Comparatively, 17.9% of Obalon Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Nuvectra beats Obalon Therapeutics on 7 of the 13 factors compared between the two stocks.
Nuvectra Corporation, a neuromodulation medical device company, develops and commercializes neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets. It operates through two segments, Nuvectra and NeuroNexus. The company offers Algovita spinal cord stimulation system that is used for the treatment of chronic pain of the trunk and limbs. It also designs, manufactures, and sells neural interface technologies, including microelectrode arrays, custom designed probes, and electrode instrumentation and accessories; and develops Virtis, a sacral neuromodulation system for the treatment of chronic urinary retention and overactive bladder. The company serves hospitals, surgery centers, and medical facilities through a direct sales force and third-party distributors in the United States and Europe. Nuvectra Corporation was founded in 2008 and is headquartered in Plano, Texas.
About Obalon Therapeutics
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.
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