Contrasting Wright Medical Group (WMGI) & RTI Surgical (RTIX)

Wright Medical Group (NASDAQ: WMGI) and RTI Surgical (NASDAQ:RTIX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Wright Medical Group and RTI Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Medical Group -22.11% -2.58% -0.70%
RTI Surgical 2.57% 2.49% 1.24%

Volatility & Risk

Wright Medical Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, RTI Surgical has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

67.7% of RTI Surgical shares are owned by institutional investors. 4.0% of Wright Medical Group shares are owned by insiders. Comparatively, 4.4% of RTI Surgical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Wright Medical Group and RTI Surgical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Medical Group 0 2 8 0 2.80
RTI Surgical 0 0 1 0 3.00

Wright Medical Group presently has a consensus target price of $29.38, suggesting a potential upside of 13.94%. Given Wright Medical Group’s higher probable upside, equities research analysts plainly believe Wright Medical Group is more favorable than RTI Surgical.

Earnings & Valuation

This table compares Wright Medical Group and RTI Surgical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wright Medical Group $744.99 million 3.67 -$202.59 million ($0.22) -117.18
RTI Surgical $279.56 million 1.07 $6.27 million $0.05 94.00

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

Summary

RTI Surgical beats Wright Medical Group on 10 of the 14 factors compared between the two stocks.

About Wright Medical Group

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells extremities and biologics products. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopaedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives and independent sales agencies in the United States, as well as direct sales offices and distributors in approximately 50 countries. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands.

About RTI Surgical

RTI Surgical, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes biologic, metal, and synthetic implants worldwide. It processes donated human musculoskeletal and other tissues, as well as bovine and porcine animal tissues to produce allograft and xenograft implants by using its proprietary BIOCLEANSE, TUTOPLAST, and CANCELLE SP sterilization processes. The company's implants are used in the fields of sports medicine, general surgery, spine, orthopedic, trauma, and cardiothoracic procedures to repair and promote the natural healing of human bone and other human tissues; and to enhance surgical outcomes. It markets its products through its direct distribution force, as well as through a network of independent distributors. The company was formerly known as RTI Biologics, Inc. and changed its name to RTI Surgical, Inc. in July 2013. RTI Surgical, Inc. was founded in 1997 and is headquartered in Alachua, Florida.

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