Critical Comparison: Establishment Labs (NASDAQ:ESTA) versus The Competition

Establishment Labs (NASDAQ: ESTA) is one of 28 public companies in the “Surgical appliances & supplies” industry, but how does it compare to its peers? We will compare Establishment Labs to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Institutional & Insider Ownership

23.1% of Establishment Labs shares are owned by institutional investors. Comparatively, 59.6% of shares of all “Surgical appliances & supplies” companies are owned by institutional investors. 9.3% of shares of all “Surgical appliances & supplies” companies are owned 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.

Analyst Ratings

This is a summary of current ratings and target prices for Establishment Labs and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Establishment Labs 0 0 3 0 3.00
Establishment Labs Competitors 231 922 1577 81 2.54

Establishment Labs currently has a consensus target price of $36.67, suggesting a potential upside of 57.17%. As a group, “Surgical appliances & supplies” companies have a potential upside of 17.64%. Given Establishment Labs’ stronger consensus rating and higher possible upside, research analysts clearly believe Establishment Labs is more favorable than its peers.

Profitability

This table compares Establishment Labs and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Establishment Labs -34.47% -90.07% -35.01%
Establishment Labs Competitors -131.99% -34.96% -20.88%

Valuation and Earnings

This table compares Establishment Labs and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Establishment Labs $61.21 million -$21.10 million -20.83
Establishment Labs Competitors $1.38 billion $141.70 million 18.49

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

Summary

Establishment Labs peers beat Establishment Labs on 8 of the 12 factors compared.

Establishment Labs Company Profile

Establishment Labs Holdings Inc., a medical technology company, designs, develops, manufactures, and markets medical devices for aesthetic plastic surgery, reconstructive plastic surgery, and aesthetic dermatology. The company primarily offers silicone gel-filled breast implants under Motiva Implants brand name. It also provides Divina 3D simulation systems to plastic surgeons for use in pre-surgical patient consultations and planning; and distributes Puregraft line of products that is used to remove blood, lipids, and other components from adipose tissue. The company sells its products through exclusive distributors and direct sales force in 60 countries worldwide. Establishment Labs Holdings Inc. was founded in 2004 and is headquartered in Alajuela, Costa Rica.

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