Comparing EnteroMedics (RSLS) and Its Peers

EnteroMedics (NASDAQ: RSLS) is one of 79 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its rivals? We will compare EnteroMedics to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Institutional & Insider Ownership

0.8% of EnteroMedics shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 26.4% of EnteroMedics shares are owned by insiders. Comparatively, 18.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares EnteroMedics and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
EnteroMedics $790,000.00 -$23.36 million -0.23
EnteroMedics Competitors $2.18 billion $239.60 million -4.81

EnteroMedics’ rivals have higher revenue and earnings than EnteroMedics. EnteroMedics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares EnteroMedics and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnteroMedics -4,509.61% -104.23% -90.59%
EnteroMedics Competitors -315.50% -23.22% -9.55%

Risk & Volatility

EnteroMedics has a beta of 3, meaning that its stock price is 200% more volatile than the S&P 500. Comparatively, EnteroMedics’ rivals have a beta of 1.24, meaning that their average stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for EnteroMedics and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnteroMedics 0 0 1 0 3.00
EnteroMedics Competitors 272 1885 3383 106 2.59

EnteroMedics presently has a consensus price target of $11.03, indicating a potential upside of 711.03%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 10.14%. Given EnteroMedics’ stronger consensus rating and higher probable upside, equities analysts plainly believe EnteroMedics is more favorable than its rivals.

Summary

EnteroMedics rivals beat EnteroMedics on 7 of the 12 factors compared.

EnteroMedics Company Profile

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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