Glaukos Corporation (NYSE: GKOS) and Endologix (NASDAQ:ELGX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitabiliy, analyst recommendations, earnings and dividends.

Profitability

This table compares Glaukos Corporation and Endologix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glaukos Corporation 3.54% 3.95% 3.43%
Endologix -66.43% -48.92% -16.16%

Insider & Institutional Ownership

88.9% of Glaukos Corporation shares are held by institutional investors. 16.4% of Glaukos Corporation shares are held by company insiders. Comparatively, 4.1% of Endologix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Glaukos Corporation has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Endologix has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Glaukos Corporation and Endologix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glaukos Corporation 0 0 7 0 3.00
Endologix 0 9 2 0 2.18

Glaukos Corporation currently has a consensus target price of $49.20, indicating a potential upside of 19.30%. Endologix has a consensus target price of $7.55, indicating a potential upside of 49.50%. Given Endologix’s higher probable upside, analysts plainly believe Endologix is more favorable than Glaukos Corporation.

Valuation and Earnings

This table compares Glaukos Corporation and Endologix’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Glaukos Corporation $127.21 million 11.12 $8.53 million $0.11 374.94
Endologix $193.17 million 2.17 -$61.29 million ($1.55) -3.26

Glaukos Corporation has higher revenue, but lower earnings than Endologix. Endologix is trading at a lower price-to-earnings ratio than Glaukos Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Glaukos Corporation beats Endologix on 11 of the 13 factors compared between the two stocks.

Glaukos Corporation Company Profile

Glaukos Corporation is an ophthalmic medical technology company. The Company focuses on the development and commercialization of products and procedures for the treatment of glaucoma. It offers iStent, a micro-invasive glaucoma surgery (MIGS) device. The iStent is a micro-bypass stent inserted through the small corneal incision made during cataract surgery and placed into Schlemm’s canal, a circular channel in the eye that collects aqueous humor and delivers it back into the bloodstream. It is developing three additional pipeline products: the iStent Inject, the iStent Supra and iDose. The iStent Inject includes two stents pre-loaded in an auto-injection inserter. The iStent Supra is designed to access an alternative drainage space within the eye. iDose is a drug delivery system that is designed to be implanted in the eye to continuously deliver therapeutic levels of medication for extended periods of time to lower intraocular pressure in glaucoma patients.

Endologix Company Profile

Endologix, Inc. is engaged in developing, manufacturing, marketing and selling medical devices for the treatment of aortic disorders. The Company’s products are intended for the treatment of abdominal aortic aneurysms (AAA). The AAA products are built on one of two platforms, including traditional minimally invasive endovascular repair (EVAR) or endovascular sealing (EVAS), its solution for sealing the aneurysm sac while maintaining blood flow through two blood flow lumens. The EVAR products include the Endologix AFX Endovascular AAA System (AFX), the VELA Proximal Endograft (VELA) and the Endologix Powerlink with Intuitrak Delivery System (Intuitrak). The EVAS product is the Nellix EndoVascular Aneurysm Sealing System (Nellix EVAS System). It offers accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, snares, and catheter introducer sheaths.

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