Head-To-Head Review: Establishment Labs (NASDAQ:ESTA) versus Bone Biologics (NASDAQ:BBLG)

Bone Biologics (NASDAQ:BBLG) and Establishment Labs (NASDAQ:ESTA) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

34.3% of Bone Biologics shares are owned by institutional investors. Comparatively, 72.9% of Establishment Labs shares are owned by institutional investors. 7.5% of Bone Biologics shares are owned by insiders. Comparatively, 11.4% of Establishment Labs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bone Biologics and Establishment Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bone Biologics	0	0	0	0	0.00
Establishment Labs	0	1	3	1	3.00

Establishment Labs has a consensus price target of $60.60, suggesting a potential upside of 31.74%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Establishment Labs is more favorable than Bone Biologics.

Earnings and Valuation

This table compares Bone Biologics and Establishment Labs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bone Biologics	N/A	N/A	-$8.95 million	N/A	N/A
Establishment Labs	$153.07 million	8.41	-$78.50 million	($2.58)	-17.83

Bone Biologics has higher earnings, but lower revenue than Establishment Labs.

Volatility and Risk

Bone Biologics has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Profitability

This table compares Bone Biologics and Establishment Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bone Biologics	N/A	-124.71%	-111.64%
Establishment Labs	-46.13%	-184.55%	-24.81%

Summary

Establishment Labs beats Bone Biologics on 9 of the 12 factors compared between the two stocks.

About Bone Biologics

Bone Biologics Corporation, a medical device company, focuses on bone regeneration in spinal fusion using the recombinant human protein. The company's NELL-1/DBM, an osteopromotive recombinant protein that provides target specific control over bone regeneration. It also develops NELL-1/DBM Fusion Device for use in spinal fusion procedures in skeletally mature patients with spinal degenerative disc disease at one level from L2-S1. The company's platform technology is used in delivering enhanced outcomes in the surgical specialties of spinal, orthopedic, general orthopedic, plastic reconstruction, neurosurgery, interventional radiology, and sports medicine. It has a license agreement with the UCLA Technology Development Group to develop and commercialize NELL-1 for spinal fusion applications. Bone Biologics Corporation was founded in 2004 and is headquartered in Burlington, Massachusetts.

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.