Establishment Labs (NASDAQ:ESTA – Get Free Report) and Flora Growth (NASDAQ:FLGC – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of current ratings and price targets for Establishment Labs and Flora Growth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 1 | 0 | 9 | 0 | 2.80 |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
Establishment Labs presently has a consensus price target of $98.56, suggesting a potential upside of 66.54%. Given Establishment Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Establishment Labs is more favorable than Flora Growth.
Risk & Volatility
Establishment Labs has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.
Insider and Institutional Ownership
72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 36.0% of Flora Growth shares are owned by institutional investors. 10.0% of Establishment Labs shares are owned by company insiders. Comparatively, 2.3% of Flora Growth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Establishment Labs and Flora Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Establishment Labs | -15.82% | -196.69% | -10.73% |
| Flora Growth | -32.03% | -64.02% | -34.46% |
Earnings and Valuation
This table compares Establishment Labs and Flora Growth”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Establishment Labs | $211.08 million | 8.35 | -$51.06 million | ($1.31) | -45.18 |
| Flora Growth | $57.61 million | 0.08 | -$15.91 million | ($32.49) | -0.13 |
Flora Growth has lower revenue, but higher earnings than Establishment Labs. Establishment Labs is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.
Summary
Establishment Labs beats Flora Growth on 10 of the 13 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 Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
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