EnteroMedics (NASDAQ: ETRM) and Synergetics USA (NASDAQ:SURG) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitabiliy.

Profitability

This table compares EnteroMedics and Synergetics USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnteroMedics -3,088.74% -506.36% -171.80%
Synergetics USA 7.35% 9.09% 6.45%

Earnings & Valuation

This table compares EnteroMedics and Synergetics USA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EnteroMedics $754,700.00 34.96 -$22.17 million ($50.07) -0.08
Synergetics USA N/A N/A N/A N/A N/A

Synergetics USA has higher revenue, but lower earnings than EnteroMedics.

Institutional & Insider Ownership

3.4% of EnteroMedics shares are owned by institutional investors. 5.5% of EnteroMedics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for EnteroMedics and Synergetics USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnteroMedics 0 0 1 0 3.00
Synergetics USA 0 0 0 0 N/A

EnteroMedics presently has a consensus target price of $11.03, indicating a potential upside of 188.74%. Given EnteroMedics’ higher possible upside, equities analysts plainly believe EnteroMedics is more favorable than Synergetics USA.

Summary

EnteroMedics beats Synergetics USA on 5 of the 8 factors compared between the two stocks.

About EnteroMedics

EnteroMedics Inc. (EnteroMedics) 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.

About Synergetics USA

Synergetics USA, Inc., formerly Valley Forge Scientific Corp., is a supplier of precision surgical devices. The Company focuses on the surgical disciplines of ophthalmology and neurosurgery. It offers precision engineered disposable and reusable devices, surgical equipment and surgical procedural kits. It also delivers energy modalities for the performance of surgery, including laser energy, ultrasonic energy, radio frequency energy for electro surgery and lesion generation, visible light energy for illumination and simultaneous infusion (irrigation) of fluids into the operative field. Its products include VersaVIT 2.0 Vitrectomy System, Directional II Laser Probe and Pinnacle 360°. It offers its products under the brand names: VersaPACK, Core Essentials, Photon, Solitaire, Volk’s and Labtician’s, among others. It offers approximately 1,000 separate catalogue items in the vitreoretinal surgical market. It sells its products in approximately 60 countries outside the United States.

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