Reviewing CochLear (OTCMKTS:CHEOY) and Establishment Labs (NASDAQ:ESTA)

CochLear (OTCMKTS:CHEOY) and Establishment Labs (NASDAQ:ESTA) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

CochLear has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Valuation & Earnings

This table compares CochLear and Establishment Labs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CochLear	$1.53 billion	5.26	$251.85 million	N/A	N/A
Establishment Labs	$211.08 million	8.36	-$51.06 million	($1.74)	-34.59

CochLear has higher revenue and earnings than Establishment Labs.

Insider & Institutional Ownership

72.9% of Establishment Labs shares are owned by institutional investors. 11.1% of Establishment Labs shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CochLear	N/A	N/A	N/A
Establishment Labs	-24.19%	-201.79%	-15.03%

Analyst Recommendations

This is a summary of current ratings and price targets for CochLear and Establishment Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CochLear	0	2	1	2	3.00
Establishment Labs	1	1	6	0	2.63

Establishment Labs has a consensus price target of $86.86, indicating a potential upside of 44.30%. Given Establishment Labs’ higher probable upside, analysts clearly believe Establishment Labs is more favorable than CochLear.

Summary

CochLear beats Establishment Labs on 8 of the 13 factors compared between the two stocks.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.

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.