Comparing Obalon Therptcs (OBLN) & RTI Surgical (RTIX)

Obalon Therptcs (NASDAQ: OBLN) and RTI Surgical (NASDAQ:RTIX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Obalon Therptcs and RTI Surgical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therptcs 1 0 3 0 2.50
RTI Surgical 0 0 0 0 N/A

Obalon Therptcs presently has a consensus target price of $15.25, indicating a potential upside of 58.52%. Given Obalon Therptcs’ higher probable upside, equities analysts plainly believe Obalon Therptcs is more favorable than RTI Surgical.

Profitability

This table compares Obalon Therptcs and RTI Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therptcs -566.87% -108.07% -48.50%
RTI Surgical -6.53% 2.07% 0.94%

Institutional & Insider Ownership

45.0% of Obalon Therptcs shares are held by institutional investors. Comparatively, 70.0% of RTI Surgical shares are held by institutional investors. 16.4% of Obalon Therptcs shares are held by company insiders. Comparatively, 4.9% of RTI Surgical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Obalon Therptcs and RTI Surgical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Obalon Therptcs $4.98 million 32.50 -$27.12 million ($6.90) -1.39
RTI Surgical $279.95 million 0.99 $15.45 million ($0.38) -12.37

RTI Surgical has higher revenue and earnings than Obalon Therptcs. RTI Surgical is trading at a lower price-to-earnings ratio than Obalon Therptcs, indicating that it is currently the more affordable of the two stocks.

Summary

RTI Surgical beats Obalon Therptcs on 7 of the 11 factors compared between the two stocks.

Obalon Therptcs 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.

RTI Surgical Company Profile

RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The Company uses natural tissues, metals and synthetics process to produce its products. The Company’s business primarily consists of six categories, such as spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic (BGS and general orthopedic), dental and surgical specialties. It processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing BIOCLEANSE, TUTOPLAST and CANCELLE SP sterilization processes, and manufactures metal and synthetic implants for distribution to hospitals and surgeons. The Company distributes its implants and services in approximately 50 states and in over 45 countries across the world.

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