Establishment Labs (NASDAQ:ESTA – Get Free Report) and HealthEquity (NASDAQ:HQY – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Valuation and Earnings
This table compares Establishment Labs and HealthEquity”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 | $211.08 million | 8.27 | -$51.06 million | ($1.74) | -34.24 |
| HealthEquity | $1.31 billion | 5.30 | $215.20 million | $2.46 | 33.52 |
Analyst Ratings
This is a summary of recent ratings and target prices for Establishment Labs and HealthEquity, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 1 | 1 | 6 | 0 | 2.63 |
| HealthEquity | 1 | 2 | 11 | 1 | 2.80 |
Establishment Labs presently has a consensus price target of $86.86, indicating a potential upside of 45.81%. HealthEquity has a consensus price target of $110.36, indicating a potential upside of 33.81%. Given Establishment Labs’ higher probable upside, analysts clearly believe Establishment Labs is more favorable than HealthEquity.
Volatility & Risk
Establishment Labs has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Profitability
This table compares Establishment Labs and HealthEquity’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% |
| HealthEquity | 16.39% | 13.86% | 8.67% |
Institutional & Insider Ownership
72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 99.6% of HealthEquity shares are owned by institutional investors. 11.1% of Establishment Labs shares are owned by company insiders. Comparatively, 1.5% of HealthEquity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
HealthEquity beats Establishment Labs on 11 of the 15 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 HealthEquity
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.
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