Critical Review: Retractable Technologies (NYSE:RVP) & Inari Medical (NASDAQ:NARI)

Retractable Technologies (NYSE:RVP) and Inari Medical (NASDAQ:NARI) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Retractable Technologies and Inari Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Retractable Technologies	0	0	0	0	0.00
Inari Medical	0	12	2	0	2.14

Inari Medical has a consensus price target of $69.22, indicating a potential downside of 13.44%. Given Inari Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Inari Medical is more favorable than Retractable Technologies.

Valuation and Earnings

This table compares Retractable Technologies and Inari Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Retractable Technologies	$33.75 million	0.56	-$7.01 million	($0.77)	-0.82
Inari Medical	$493.63 million	9.48	-$1.64 million	($1.35)	-59.24

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

Profitability

This table compares Retractable Technologies and Inari Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Retractable Technologies	-41.11%	-17.15%	-9.33%
Inari Medical	-13.68%	-10.09%	-6.60%

Institutional & Insider Ownership

7.6% of Retractable Technologies shares are owned by institutional investors. Comparatively, 91.0% of Inari Medical shares are owned by institutional investors. 57.1% of Retractable Technologies shares are owned by insiders. Comparatively, 10.6% of Inari Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Retractable Technologies has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Inari Medical has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

Inari Medical beats Retractable Technologies on 10 of the 14 factors compared between the two stocks.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.

About Inari Medical

Inari Medical, Inc. builds minimally invasive, novel, and catheter-based mechanical thrombectomy devices and accessories for the specific disease states in the United States. The company provides ClotTriever system, which is designed to core, capture, and remove large clots from large vessels for treatment of deep vein thrombosis and peripheral thrombus; FlowTriever system, a large bore catheter-based aspiration and mechanical thrombectomy system to remove large clots from large vessels in the peripheral vasculature for treating pulmonary embolism and other complex venous thromboembolism cases; InThrill system to treat small vessel thrombosis; and LimFlow system for patients who have chronic limb-threatening ischemia with no suitable endovascular or surgical revascularization options and risk of major amputation. It serves interventional radiologists, interventional cardiologists, and vascular surgeons. The company was formerly known as Inceptus Newco1 Inc. and changed its name to Inari Medical, Inc. in September 2013. Inari Medical, Inc. was incorporated in 2011 and is headquartered in Irvine, California.