Critical Review: OraSure Technologies (NASDAQ:OSUR) and Establishment Labs (NASDAQ:ESTA)

OraSure Technologies (NASDAQ:OSUR) and Establishment Labs (NASDAQ:ESTA) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Risk and Volatility

OraSure Technologies has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

93.5% of OraSure Technologies shares are held by institutional investors. Comparatively, 72.9% of Establishment Labs shares are held by institutional investors. 4.7% of OraSure Technologies shares are held by insiders. Comparatively, 10.0% of Establishment Labs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares OraSure Technologies and Establishment Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OraSure Technologies	$115.02 million	2.26	-$68.73 million	($0.69)	-5.46
Establishment Labs	$211.08 million	9.22	-$51.06 million	($1.31)	-49.84

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

Profitability

This table compares OraSure Technologies and Establishment Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OraSure Technologies	-43.70%	-19.09%	-16.26%
Establishment Labs	-15.82%	-196.69%	-10.73%

Analyst Ratings

This is a summary of recent recommendations and price targets for OraSure Technologies and Establishment Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OraSure Technologies	1	2	0	0	1.67
Establishment Labs	1	0	8	0	2.78

OraSure Technologies presently has a consensus target price of $3.00, suggesting a potential downside of 20.42%. Establishment Labs has a consensus target price of $100.25, suggesting a potential upside of 53.55%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Establishment Labs is more favorable than OraSure Technologies.

Summary

Establishment Labs beats OraSure Technologies on 10 of the 14 factors compared between the two stocks.

About OraSure Technologies

OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.

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.