Analyzing Endologix (NASDAQ:ELGX) and Hancock Jaffe Laboratories (NASDAQ:HJLI)

Endologix (NASDAQ:ELGX) and Hancock Jaffe Laboratories (NASDAQ:HJLI) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Endologix and Hancock Jaffe Laboratories’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endologix $156.47 million 0.10 -$79.71 million ($7.20) -0.12
Hancock Jaffe Laboratories $190,000.00 67.08 -$13.04 million N/A N/A

Hancock Jaffe Laboratories has lower revenue, but higher earnings than Endologix.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Endologix and Hancock Jaffe Laboratories, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endologix 0 2 1 0 2.33
Hancock Jaffe Laboratories 0 0 1 0 3.00

Endologix presently has a consensus target price of $7.00, indicating a potential upside of 723.72%. Hancock Jaffe Laboratories has a consensus target price of $3.00, indicating a potential upside of 321.88%. Given Endologix’s higher probable upside, equities analysts plainly believe Endologix is more favorable than Hancock Jaffe Laboratories.

Profitability

This table compares Endologix and Hancock Jaffe Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endologix -58.24% -99.62% -16.35%
Hancock Jaffe Laboratories N/A -224.86% -128.87%

Insider and Institutional Ownership

72.3% of Endologix shares are held by institutional investors. Comparatively, 1.7% of Hancock Jaffe Laboratories shares are held by institutional investors. 1.3% of Endologix shares are held by insiders. Comparatively, 6.4% of Hancock Jaffe Laboratories shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Endologix has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Hancock Jaffe Laboratories has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Hancock Jaffe Laboratories beats Endologix on 6 of the 11 factors compared between the two stocks.

About Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California.

About Hancock Jaffe Laboratories

Hancock Jaffe Laboratories, Inc., a development stage medical device company, develops and sells biological tissue solutions to treat patients with coronary, vascular, end stage renal, and peripheral arterial diseases in the United States and Europe. The company develops and manufactures implantable cardiovascular bioprosthetic devices for patients with cardiovascular disease, peripheral arterial and venous disease, and end stage renal disease. Its products include the Bioprosthetic Heart Valve, a bio-prosthetic heart valve designed to mimic and function like a native heart valve; the CoreoGraft, a device for use as an alternate or supplemental coronary vascular conduit in coronary bypass surgery; and the Venous Valve, a bioprosthetic, pig venous valve for patients with lower limb chronic venous insufficiency. The company was founded in 1987 and is headquartered in Irvine, California. As of July 18, 2006, Hancock Jaffe Laboratories, Inc. is a subsidiary of Leman Cardiovascular SA.

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