Establishment Labs (NASDAQ:ESTA – Get Free Report) and Pediatrix Medical Group (NYSE:MD – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Profitability
This table compares Establishment Labs and Pediatrix Medical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Establishment Labs | -43.45% | -235.45% | -22.83% |
| Pediatrix Medical Group | 8.64% | 19.59% | 7.75% |
Valuation & Earnings
This table compares Establishment Labs and Pediatrix Medical Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Establishment Labs | $166.02 million | 13.30 | -$84.60 million | ($2.84) | -26.76 |
| Pediatrix Medical Group | $1.91 billion | 0.84 | -$99.07 million | $1.94 | 9.69 |
Establishment Labs has higher earnings, but lower revenue than Pediatrix Medical Group. Establishment Labs is trading at a lower price-to-earnings ratio than Pediatrix Medical Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Establishment Labs has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Pediatrix Medical Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Establishment Labs and Pediatrix Medical Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 1 | 1 | 6 | 0 | 2.63 |
| Pediatrix Medical Group | 0 | 5 | 1 | 0 | 2.17 |
Establishment Labs presently has a consensus price target of $78.86, indicating a potential upside of 3.76%. Pediatrix Medical Group has a consensus price target of $20.00, indicating a potential upside of 6.41%. Given Pediatrix Medical Group’s higher possible upside, analysts clearly believe Pediatrix Medical Group is more favorable than Establishment Labs.
Institutional and Insider Ownership
72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 97.7% of Pediatrix Medical Group shares are owned by institutional investors. 11.1% of Establishment Labs shares are owned by company insiders. Comparatively, 0.9% of Pediatrix Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Pediatrix Medical Group beats Establishment Labs on 8 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 Pediatrix Medical Group
Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.
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