Critical Survey: Obalon Therptcs (OBLN) and Its Rivals

Obalon Therptcs (NASDAQ: OBLN) is one of 19 publicly-traded companies in the “Medical Devices & Implants” industry, but how does it compare to its rivals? We will compare Obalon Therptcs to similar companies based on the strength of its valuation, institutional ownership, profitability, earnings, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Obalon Therptcs and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Obalon Therptcs $3.39 million -$20.46 million -3.75
Obalon Therptcs Competitors $1.67 billion $207.58 million 67.31

Obalon Therptcs’ rivals have higher revenue and earnings than Obalon Therptcs. Obalon Therptcs is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Obalon Therptcs and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therptcs 1 0 2 0 2.33
Obalon Therptcs Competitors 111 731 1026 10 2.50

Obalon Therptcs presently has a consensus target price of $12.00, indicating a potential upside of 60.86%. As a group, “Medical Devices & Implants” companies have a potential upside of 37.53%. Given Obalon Therptcs’ higher possible upside, analysts plainly believe Obalon Therptcs is more favorable than its rivals.

Insider and Institutional Ownership

44.1% of Obalon Therptcs shares are owned by institutional investors. Comparatively, 54.8% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 16.4% of Obalon Therptcs shares are owned by insiders. Comparatively, 11.9% of shares of all “Medical Devices & Implants” companies are owned by 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.

Profitability

This table compares Obalon Therptcs and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therptcs -459.54% -59.77% -47.02%
Obalon Therptcs Competitors -101.23% -92.70% -30.32%

Volatility & Risk

Obalon Therptcs has a beta of -4.31, suggesting that its share price is 531% less volatile than the S&P 500. Comparatively, Obalon Therptcs’ rivals have a beta of 0.21, suggesting that their average share price is 79% less volatile than the S&P 500.

Summary

Obalon Therptcs rivals beat Obalon Therptcs on 8 of the 12 factors compared.

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.

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