Financial Analysis: Reshape Lifesciences (RSLS) & LeMaitre Vascular (LMAT)

Reshape Lifesciences (NASDAQ: RSLS) and LeMaitre Vascular (NASDAQ:LMAT) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Reshape Lifesciences and LeMaitre Vascular, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reshape Lifesciences 0 0 1 0 3.00
LeMaitre Vascular 0 5 1 0 2.17

Reshape Lifesciences presently has a consensus price target of $11.00, indicating a potential upside of 587.50%. LeMaitre Vascular has a consensus price target of $31.50, indicating a potential downside of 4.02%. Given Reshape Lifesciences’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Reshape Lifesciences is more favorable than LeMaitre Vascular.

Insider and Institutional Ownership

0.6% of Reshape Lifesciences shares are owned by institutional investors. Comparatively, 69.2% of LeMaitre Vascular shares are owned by institutional investors. 26.4% of Reshape Lifesciences shares are owned by company insiders. Comparatively, 23.7% of LeMaitre Vascular shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Reshape Lifesciences and LeMaitre Vascular’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reshape Lifesciences $790,000.00 60.68 -$23.36 million ($5.90) -0.27
LeMaitre Vascular $89.15 million 7.09 $10.59 million $0.78 42.08

LeMaitre Vascular has higher revenue and earnings than Reshape Lifesciences. Reshape Lifesciences is trading at a lower price-to-earnings ratio than LeMaitre Vascular, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Reshape Lifesciences and LeMaitre Vascular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reshape Lifesciences -4,509.61% -104.23% -90.59%
LeMaitre Vascular 15.81% 16.16% 14.03%

Dividends

LeMaitre Vascular pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Reshape Lifesciences does not pay a dividend. LeMaitre Vascular pays out 28.2% of its earnings in the form of a dividend.

Volatility & Risk

Reshape Lifesciences has a beta of 2.97, indicating that its stock price is 197% more volatile than the S&P 500. Comparatively, LeMaitre Vascular has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

LeMaitre Vascular beats Reshape Lifesciences on 9 of the 15 factors compared between the two stocks.

About Reshape Lifesciences

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.

About LeMaitre Vascular

LeMaitre Vascular, Inc. is a provider of medical devices for the treatment of peripheral vascular disease. The Company develops, manufactures and markets medical devices and implants used primarily in the field of vascular surgery. It is engaged in the design, marketing, sales and technical support of medical devices and implants for the treatment of peripheral vascular disease industry segment. The Company’s product lines include valvulotomes, balloon catheters, carotid shunts, biologic vascular patches, radiopaque marking tape, anastomotic clips, remote endarterectomy devices, laparoscopic cholecystectomy devices, prosthetic vascular grafts, biologic vascular grafts and powered phlebectomy devices. Its portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart, including the Expandable LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt, VascuTape Radiopaque Tape and the XenoSure biologic patch.

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