Contrasting Retractable Technologies (NYSE:RVP) and TELA Bio (NASDAQ:TELA)

TELA Bio (NASDAQ:TELA) and Retractable Technologies (NYSE:RVP) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Risk & Volatility

TELA Bio has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Retractable Technologies has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500.

Insider and Institutional Ownership

94.3% of TELA Bio shares are owned by institutional investors. Comparatively, 7.6% of Retractable Technologies shares are owned by institutional investors. 6.0% of TELA Bio shares are owned by company insiders. Comparatively, 57.1% of Retractable Technologies shares are owned by company 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.

Profitability

This table compares TELA Bio and Retractable Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELA Bio	-60.49%	-556.18%	-63.13%
Retractable Technologies	-41.11%	-17.15%	-9.33%

Valuation and Earnings

This table compares TELA Bio and Retractable Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELA Bio	$69.30 million	0.55	-$46.66 million	($1.39)	-0.70
Retractable Technologies	$33.05 million	0.66	-$7.01 million	($0.41)	-1.78

Retractable Technologies has lower revenue, but higher earnings than TELA Bio. Retractable Technologies is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for TELA Bio and Retractable Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELA Bio	0	1	3	0	2.75
Retractable Technologies	0	0	0	0	0.00

TELA Bio presently has a consensus price target of $7.25, indicating a potential upside of 647.42%. Given TELA Bio’s stronger consensus rating and higher possible upside, equities analysts clearly believe TELA Bio is more favorable than Retractable Technologies.

Summary

Retractable Technologies beats TELA Bio on 8 of the 14 factors compared between the two stocks.

About TELA Bio

TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.