Head-To-Head Contrast: Establishment Labs (NASDAQ:ESTA) & Progyny (NASDAQ:PGNY)

Establishment Labs (NASDAQ:ESTA) and Progyny (NASDAQ:PGNY) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 94.9% of Progyny shares are owned by institutional investors. 11.4% of Establishment Labs shares are owned by company insiders. Comparatively, 9.4% of Progyny shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Establishment Labs and Progyny”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$166.02 million	8.87	-$84.60 million	($3.05)	-16.66
Progyny	$1.17 billion	1.44	$54.34 million	$0.59	33.10

Progyny has higher revenue and earnings than Establishment Labs. Establishment Labs is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Establishment Labs and Progyny, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	5	0	2.57
Progyny	0	4	5	1	2.70

Establishment Labs presently has a consensus price target of $56.50, suggesting a potential upside of 11.20%. Progyny has a consensus price target of $25.44, suggesting a potential upside of 30.28%. Given Progyny’s stronger consensus rating and higher probable upside, analysts plainly believe Progyny is more favorable than Establishment Labs.

Risk & Volatility

Establishment Labs has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Progyny has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Establishment Labs and Progyny’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-49.89%	-224.34%	-25.53%
Progyny	4.28%	10.69%	7.12%

Summary

Progyny beats Establishment Labs on 12 of the 14 factors compared between the two stocks.

About Establishment Labs

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.