Critical Analysis: Endologix (ELGX) and The Competition

Endologix (NASDAQ: ELGX) is one of 19 public companies in the “Medical Devices & Implants” industry, but how does it contrast to its competitors? We will compare Endologix to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Valuation & Earnings

This table compares Endologix and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Endologix $192.93 million -$154.67 million -4.94
Endologix Competitors $1.67 billion $207.76 million 58.39

Endologix’s competitors have higher revenue and earnings than Endologix. Endologix is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

54.4% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 3.9% of Endologix shares are owned by insiders. Comparatively, 10.3% of shares of all “Medical Devices & Implants” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Endologix and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endologix 1 7 1 0 2.00
Endologix Competitors 126 738 1041 10 2.49

Endologix currently has a consensus target price of $5.36, indicating a potential upside of 16.71%. As a group, “Medical Devices & Implants” companies have a potential upside of 40.63%. Given Endologix’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Endologix has less favorable growth aspects than its competitors.

Volatility and Risk

Endologix has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Endologix’s competitors have a beta of 0.31, meaning that their average stock price is 69% less volatile than the S&P 500.

Profitability

This table compares Endologix and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endologix -41.60% -52.18% -13.70%
Endologix Competitors -100.14% -92.44% -29.75%

Summary

Endologix competitors beat Endologix on 9 of the 13 factors compared.

About Endologix

Endologix, Inc. is engaged in developing, manufacturing, marketing and selling medical devices for the treatment of aortic disorders. The Company’s products are intended for the treatment of abdominal aortic aneurysms (AAA). The AAA products are built on one of two platforms, including traditional minimally invasive endovascular repair (EVAR) or endovascular sealing (EVAS), its solution for sealing the aneurysm sac while maintaining blood flow through two blood flow lumens. The EVAR products include the Endologix AFX Endovascular AAA System (AFX), the VELA Proximal Endograft (VELA) and the Endologix Powerlink with Intuitrak Delivery System (Intuitrak). The EVAS product is the Nellix EndoVascular Aneurysm Sealing System (Nellix EVAS System). It offers accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, snares, and catheter introducer sheaths.

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