Dynatronics Corporation (NASDAQ: DYNT) and EnteroMedics (NASDAQ:RSLS) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Risk and Volatility
Dynatronics Corporation has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500. Comparatively, EnteroMedics has a beta of 3.09, meaning that its share price is 209% more volatile than the S&P 500.
This table compares Dynatronics Corporation and EnteroMedics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Dynatronics Corporation and EnteroMedics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dynatronics Corporation||$35.76 million||0.32||-$1.86 million||($1.24)||-1.90|
Dynatronics Corporation has higher revenue and earnings than EnteroMedics. Dynatronics Corporation is trading at a lower price-to-earnings ratio than EnteroMedics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Dynatronics Corporation and EnteroMedics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EnteroMedics has a consensus target price of $11.03, suggesting a potential upside of 509.39%. Given EnteroMedics’ higher probable upside, analysts plainly believe EnteroMedics is more favorable than Dynatronics Corporation.
Institutional & Insider Ownership
17.5% of Dynatronics Corporation shares are held by institutional investors. Comparatively, 0.9% of EnteroMedics shares are held by institutional investors. 51.8% of Dynatronics Corporation shares are held by insiders. Comparatively, 32.5% of EnteroMedics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dynatronics Corporation beats EnteroMedics on 8 of the 12 factors compared between the two stocks.
About Dynatronics Corporation
Dynatronics Corporation is a manufacturer and distributor of physical medicine products. The Company’s products include a line of medical equipment for physical medicine applications, including therapy devices, medical supplies and soft goods, treatment tables and rehabilitation equipment. Its products are used by physical therapists, chiropractors, sports medicine practitioners, podiatrists, physicians and other physical medicine professionals. Its physical medicine products include therapeutic modalities, such as Dynatron Solaris, including electrotherapy and thermal therapy, and 25 Series, including electrotherapy and ultrasound; manufactured capital products, including traction systems and wood furniture; manufactured supplies, including cold packs, straps, wedges, bolsters and mats; distributed capital products, including hydrotherapy, weight training equipment and pilates, and distributed supplies, including clinical accessories, sports med and taping products, lotions and gels.
ReShape Lifesciences Inc., formerly EnteroMedics Inc., is a medical device company. The Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. The Company’s neuroblocking technology, which is referred to as VBLOC therapy, is designed to intermittently block the vagus nerve. The Company’s initial product is the Maestro Rechargeable System, which uses VBLOC therapy to limit the expansion of the stomach, help control hunger sensations between meals, reduce the frequency and intensity of stomach contractions and produce a feeling of early and prolonged fullness. The Company’s VBLOC therapy is designed to block the gastrointestinal effects of the vagus nerve by replicating a vagotomy using high-frequency, low-energy electrical impulses to intermittently interrupt naturally occurring neural impulses on the vagus nerve between the brain and the digestive system.
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