Endologix (ELGX) versus Obalon Therptcs (OBLN) Head-To-Head Contrast

Obalon Therptcs (NASDAQ: OBLN) and Endologix (NASDAQ:ELGX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

43.7% of Obalon Therptcs shares are held by institutional investors. 16.4% of Obalon Therptcs shares are held by insiders. Comparatively, 4.1% of Endologix shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Obalon Therptcs and Endologix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therptcs 1 0 2 0 2.33
Endologix 0 10 0 0 2.00

Obalon Therptcs presently has a consensus target price of $12.00, suggesting a potential upside of 50.56%. Endologix has a consensus target price of $6.17, suggesting a potential upside of 26.89%. Given Obalon Therptcs’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Obalon Therptcs is more favorable than Endologix.

Valuation & Earnings

This table compares Obalon Therptcs and Endologix’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Obalon Therptcs $3.39 million 41.00 -$20.46 million ($1.99) -4.01
Endologix $192.93 million 2.10 -$154.67 million ($0.93) -5.23

Obalon Therptcs has higher revenue, but lower earnings than Endologix. Endologix is trading at a lower price-to-earnings ratio than Obalon Therptcs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Obalon Therptcs and Endologix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therptcs -459.54% -59.77% -47.02%
Endologix -41.60% -52.18% -13.70%

Summary

Obalon Therptcs beats Endologix on 7 of the 12 factors compared between the two stocks.

About Obalon Therptcs

Obalon Therapeutics, Inc. is a United States-based commercial-stage medical device company focused on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. The Company’s product, Obalon balloon system, is a swallowable, gas-filled intragastric balloon designed to provide weight loss in obese patients. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. All balloons must be removed six months after the first balloon is placed. The Obalon balloon system intends to provide patients and physicians with a reversible and repeatable weight loss solution in an outpatient setting, without altering patient anatomy or requiring surgery. The Company has received Premarket approval (PMA) for its Obalon balloon system based on the results of its United States pivotal clinical trial, referred to as the SMART trial.

About Endologix

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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