Apollo Endosurgery (NASDAQ: APEN) and Penumbra (NYSE:PEN) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Apollo Endosurgery and Penumbra, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Endosurgery 0 0 3 0 3.00
Penumbra 0 0 2 0 3.00

Apollo Endosurgery presently has a consensus price target of $11.00, suggesting a potential upside of 136.56%. Penumbra has a consensus price target of $98.00, suggesting a potential upside of 4.76%. Given Apollo Endosurgery’s higher possible upside, analysts clearly believe Apollo Endosurgery is more favorable than Penumbra.

Insider & Institutional Ownership

8.9% of Apollo Endosurgery shares are owned by institutional investors. Comparatively, 70.9% of Penumbra shares are owned by institutional investors. 74.2% of Apollo Endosurgery shares are owned by company insiders. Comparatively, 13.5% of Penumbra shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Apollo Endosurgery has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Profitability

This table compares Apollo Endosurgery and Penumbra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Endosurgery -81.59% -142.98% -54.80%
Penumbra -2.78% -2.58% -2.27%

Valuation and Earnings

This table compares Apollo Endosurgery and Penumbra’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apollo Endosurgery $63.01 million 1.27 -$10.53 million N/A N/A
Penumbra $294.09 million 10.74 -$3.32 million ($0.27) -346.47

Penumbra has higher revenue and earnings than Apollo Endosurgery.

Summary

Penumbra beats Apollo Endosurgery on 7 of the 11 factors compared between the two stocks.

Apollo Endosurgery Company Profile

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.

Penumbra Company Profile

Penumbra, Inc. is a healthcare company focused on interventional therapies. The Company designs, develops, manufactures and markets medical devices. It has a portfolio of products that addresses medical conditions and clinical needs across two markets, neuro and peripheral vascular. The conditions that its products address include ischemic stroke, hemorrhagic stroke and various peripheral vascular conditions that can be treated through thrombectomy and embolization procedures. It focuses on developing, manufacturing and marketing products for use by specialist physicians, including interventional neuroradiologists, neurosurgeons, interventional neurologists, interventional radiologists and vascular surgeons. Its neuro products include Neurovascular Access, Neuro Thrombectomy (Ischemic Stroke), Neurovascular Embolization (Brain Aneurysms) and Neurosurgical Tools (Hemorrhagic Stroke). Its peripheral vascular products include Peripheral Vascular Embolization and Peripheral Thrombectomy.

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