Comparing Medtronic (NYSE:MDT) & Establishment Labs (NASDAQ:ESTA)

Establishment Labs (NASDAQ:ESTA) and Medtronic (NYSE:MDT) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 82.1% of Medtronic shares are held by institutional investors. 10.0% of Establishment Labs shares are held by company insiders. Comparatively, 0.3% of Medtronic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Establishment Labs and Medtronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-14.56%	-185.60%	-10.49%
Medtronic	13.93%	14.78%	7.97%

Volatility and Risk

Establishment Labs has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Earnings and Valuation

This table compares Establishment Labs and Medtronic”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	9.46	-$51.06 million	($1.28)	-52.36
Medtronic	$36.36 billion	3.58	$4.80 billion	$4.06	25.08

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Establishment Labs and Medtronic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	0	9	0	2.80
Medtronic	1	9	18	0	2.61

Establishment Labs currently has a consensus price target of $95.00, indicating a potential upside of 41.75%. Medtronic has a consensus price target of $102.88, indicating a potential upside of 1.04%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts plainly believe Establishment Labs is more favorable than Medtronic.

Summary

Medtronic beats Establishment Labs on 9 of the 14 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 Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.