Reviewing Establishment Labs (NASDAQ:ESTA) and Selectis Health (OTCMKTS:GBCS)

Establishment Labs (NASDAQ:ESTA) and Selectis Health (OTCMKTS:GBCS) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	6	0	2.63
Selectis Health	0	0	0	0	0.00

Establishment Labs presently has a consensus target price of $86.86, indicating a potential upside of 31.05%. Given Establishment Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Establishment Labs is more favorable than Selectis Health.

Risk and Volatility

Establishment Labs has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Selectis Health has a beta of -1.12, indicating that its share price is 212% less volatile than the S&P 500.

Valuation & Earnings

This table compares Establishment Labs and Selectis Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$211.08 million	9.23	-$51.06 million	($1.74)	-38.09
Selectis Health	$41.44 million	0.33	-$1.02 million	($0.34)	-13.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-24.19%	-201.79%	-15.03%
Selectis Health	-2.45%	N/A	-3.03%

Insider and Institutional Ownership

72.9% of Establishment Labs shares are owned by institutional investors. 10.0% of Establishment Labs shares are owned by company insiders. Comparatively, 15.2% of Selectis Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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 Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.