Arch Therapeutics (OTCMKTS:ARTH) & Integra LifeSciences (NASDAQ:IART) Critical Survey

Integra LifeSciences (NASDAQ:IART) and Arch Therapeutics (OTCMKTS:ARTH) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Integra LifeSciences and Arch Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integra LifeSciences	4	3	2	0	1.78
Arch Therapeutics	0	0	0	0	0.00

Integra LifeSciences currently has a consensus target price of $18.63, suggesting a potential upside of 53.17%. Given Integra LifeSciences’ stronger consensus rating and higher possible upside, equities analysts clearly believe Integra LifeSciences is more favorable than Arch Therapeutics.

Valuation and Earnings

This table compares Integra LifeSciences and Arch Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integra LifeSciences	$1.62 billion	0.58	$67.74 million	($0.38)	-32.00
Arch Therapeutics	$80,000.00	0.07	-$6.98 million	N/A	N/A

Integra LifeSciences has higher revenue and earnings than Arch Therapeutics.

Risk & Volatility

Integra LifeSciences has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Arch Therapeutics has a beta of 4.02, indicating that its stock price is 302% more volatile than the S&P 500.

Insider & Institutional Ownership

84.8% of Integra LifeSciences shares are owned by institutional investors. Comparatively, 6.9% of Arch Therapeutics shares are owned by institutional investors. 3.5% of Integra LifeSciences shares are owned by insiders. Comparatively, 4.5% of Arch Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Integra LifeSciences and Arch Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integra LifeSciences	-0.42%	12.35%	4.82%
Arch Therapeutics	-8,257.70%	N/A	-730.22%

Summary

Integra LifeSciences beats Arch Therapeutics on 10 of the 12 factors compared between the two stocks.

About Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.