Spectral Medical (OTCMKTS:EDTXF) & ReShape Lifesciences (NASDAQ:RSLS) Head to Head Analysis

Spectral Medical (OTCMKTS:EDTXF) and ReShape Lifesciences (NASDAQ:RSLS) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Spectral Medical and ReShape Lifesciences’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral Medical	$1.18 million	76.34	-$11.60 million	($0.04)	-8.08
ReShape Lifesciences	$8.68 million	0.25	-$11.39 million	N/A	N/A

ReShape Lifesciences has higher revenue and earnings than Spectral Medical.

Analyst Ratings

This is a breakdown of current ratings and price targets for Spectral Medical and ReShape Lifesciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral Medical	0	0	0	0	N/A
ReShape Lifesciences	0	0	0	0	N/A

ReShape Lifesciences has a consensus target price of $8.00, indicating a potential upside of 4,757.32%. Given ReShape Lifesciences’ higher probable upside, analysts plainly believe ReShape Lifesciences is more favorable than Spectral Medical.

Institutional and Insider Ownership

22.1% of ReShape Lifesciences shares are held by institutional investors. 1.5% of Spectral Medical shares are held by company insiders. Comparatively, 0.1% of ReShape Lifesciences shares are held 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.

Volatility & Risk

Spectral Medical has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, ReShape Lifesciences has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Profitability

This table compares Spectral Medical and ReShape Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral Medical	-974.16%	N/A	-192.15%
ReShape Lifesciences	-131.22%	-187.89%	-97.55%

Summary

ReShape Lifesciences beats Spectral Medical on 6 of the 10 factors compared between the two stocks.

About Spectral Medical

Spectral Medical Inc., together with its subsidiaries, focuses on the development and commercialization of products for the treatment of septic shock in North America. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.

About ReShape Lifesciences

ReShape Lifesciences Inc., a medical device company, provides products and services that manages and treat obesity and metabolic diseases in the United States, Australia, Europe, and internationally. The company's product portfolio includes Lap-Band System, a minimally invasive long-term treatment of severe obesity and more invasive surgical stapling procedures, such as the gastric bypass or sleeve gastrectomy and ReShape Vest system, a laparoscopically implantable device to enable weight loss and stomach preservation. It also offers ReShapeCare virtual health coaching program, a program that supports healthy lifestyle changes for all medically managed weight-loss patients; and ReShape Diabetes Bloc-Stim Neuromodulation, a technology that is in preclinical development for the treatment of type 2 diabetes mellitus. In addition, the company provides Obalon Balloon System, a swallowable capsule used to track and display the location of the balloon during placement. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in 2017. ReShape Lifesciences Inc. was incorporated in 2002 and is headquartered in San Clemente, California.