Critical Contrast: Pediatrix Medical Group (NYSE:MD) and Establishment Labs (NASDAQ:ESTA)

Pediatrix Medical Group (NYSE:MD) and Establishment Labs (NASDAQ:ESTA) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Risk and Volatility

Pediatrix Medical Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Pediatrix Medical Group and Establishment Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	8.44%	20.45%	7.94%
Establishment Labs	-43.45%	-235.45%	-22.83%

Valuation & Earnings

This table compares Pediatrix Medical Group and Establishment Labs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$2.01 billion	0.94	-$99.07 million	$1.90	11.56
Establishment Labs	$166.02 million	13.34	-$84.60 million	($2.84)	-26.84

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

Institutional & Insider Ownership

97.7% of Pediatrix Medical Group shares are owned by institutional investors. Comparatively, 72.9% of Establishment Labs shares are owned by institutional investors. 0.9% of Pediatrix Medical Group shares are owned by company insiders. Comparatively, 11.1% of Establishment Labs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	5	1	0	2.17
Establishment Labs	1	1	6	0	2.63

Pediatrix Medical Group presently has a consensus target price of $21.00, suggesting a potential downside of 4.35%. Establishment Labs has a consensus target price of $78.86, suggesting a potential upside of 3.45%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Establishment Labs is more favorable than Pediatrix Medical Group.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

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.