Sonic Healthcare (OTCMKTS:SKHHY) versus Establishment Labs (NASDAQ:ESTA) Head to Head Analysis

Establishment Labs (NASDAQ:ESTA) and Sonic Healthcare (OTCMKTS:SKHHY) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Establishment Labs and Sonic Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	7	0	2.67
Sonic Healthcare	2	0	0	0	1.00

Establishment Labs presently has a consensus target price of $90.43, indicating a potential downside of 2.05%. Given Establishment Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Establishment Labs is more favorable than Sonic Healthcare.

Volatility and Risk

Establishment Labs has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-19.05%	-218.77%	-12.31%
Sonic Healthcare	N/A	N/A	N/A

Insider & Institutional Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 0.0% of Sonic Healthcare shares are held by institutional investors. 10.0% of Establishment Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Establishment Labs and Sonic Healthcare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$211.08 million	12.87	-$51.06 million	($1.49)	-61.96
Sonic Healthcare	$6.25 billion	1.18	$332.61 million	N/A	N/A

Sonic Healthcare has higher revenue and earnings than Establishment Labs.

Summary

Establishment Labs beats Sonic Healthcare on 7 of the 12 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 Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.