Contrasting Obalon Therapeutics (OBLN) and AtriCure (ATRC)

Obalon Therapeutics (NASDAQ: OBLN) and AtriCure (NASDAQ:ATRC) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Valuation & Earnings

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This table compares Obalon Therapeutics and AtriCure’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obalon Therapeutics $9.91 million 6.24 -$34.76 million ($2.08) -1.69
AtriCure $174.72 million 4.28 -$26.89 million ($0.83) -25.70

AtriCure has higher revenue and earnings than Obalon Therapeutics. AtriCure is trading at a lower price-to-earnings ratio than Obalon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Obalon Therapeutics and AtriCure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therapeutics -350.67% -74.80% -56.13%
AtriCure -15.39% -16.74% -10.04%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Obalon Therapeutics and AtriCure, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therapeutics 0 1 4 0 2.80
AtriCure 0 0 5 0 3.00

Obalon Therapeutics presently has a consensus price target of $9.25, suggesting a potential upside of 163.53%. AtriCure has a consensus price target of $24.80, suggesting a potential upside of 16.27%. Given Obalon Therapeutics’ higher possible upside, equities analysts clearly believe Obalon Therapeutics is more favorable than AtriCure.

Institutional and Insider Ownership

42.7% of Obalon Therapeutics shares are held by institutional investors. Comparatively, 87.7% of AtriCure shares are held by institutional investors. 16.4% of Obalon Therapeutics shares are held by company insiders. Comparatively, 10.0% of AtriCure shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Obalon Therapeutics has a beta of -2.16, suggesting that its share price is 316% less volatile than the S&P 500. Comparatively, AtriCure has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Summary

AtriCure beats Obalon Therapeutics on 10 of the 13 factors compared between the two stocks.

Obalon Therapeutics Company Profile

Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. It offers the Obalon balloon system designed to provide weight loss in obese patients. Obalon Therapeutics, Inc. was founded in 2008 and is headquartered in Carlsbad, California.

AtriCure Company Profile

AtriCure, Inc. provides atrial fibrillation solutions to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy; and EPi-Sense guided coagulation system used for the temporary cardiac signal sensing and recording during surgery. It also provides SUBTLE cannula, an access device and conduit for the ablation device and endoscope to enable a closed chest endoscopic approach; multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable physicians to create an expanded cardiac ablation lesion set. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. AtriCure sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.

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