Critical Analysis: RTI Surgical (RTIX) versus Endologix (ELGX)
RTI Surgical (NASDAQ: RTIX) and Endologix (NASDAQ:ELGX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Insider and Institutional Ownership
70.0% of RTI Surgical shares are held by institutional investors. 4.9% of RTI Surgical shares are held by company insiders. Comparatively, 3.9% of Endologix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
RTI Surgical has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Endologix has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
This table compares RTI Surgical and Endologix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for RTI Surgical and Endologix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Endologix has a consensus price target of $6.33, indicating a potential upside of 11.31%. Given Endologix’s higher probable upside, analysts clearly believe Endologix is more favorable than RTI Surgical.
Valuation & Earnings
This table compares RTI Surgical and Endologix’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RTI Surgical||$279.95 million||0.98||$15.45 million||($0.38)||-12.24|
|Endologix||$190.75 million||2.49||-$54.38 million||($0.94)||-6.05|
RTI Surgical has higher revenue and earnings than Endologix. RTI Surgical is trading at a lower price-to-earnings ratio than Endologix, indicating that it is currently the more affordable of the two stocks.
RTI Surgical beats Endologix on 9 of the 11 factors compared between the two stocks.
RTI Surgical Company Profile
RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The Company uses natural tissues, metals and synthetics process to produce its products. The Company’s business primarily consists of six categories, such as spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic (BGS and general orthopedic), dental and surgical specialties. It processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing BIOCLEANSE, TUTOPLAST and CANCELLE SP sterilization processes, and manufactures metal and synthetic implants for distribution to hospitals and surgeons. The Company distributes its implants and services in approximately 50 states and in over 45 countries across the world.
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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