EnteroMedics (NASDAQ: ETRM) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its competitors? We will compare EnteroMedics to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for EnteroMedics and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnteroMedics 0 0 1 0 3.00
EnteroMedics Competitors 416 2179 3383 122 2.53

EnteroMedics currently has a consensus target price of $11.03, indicating a potential upside of 493.01%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 21.90%. Given EnteroMedics’ stronger consensus rating and higher possible upside, analysts clearly believe EnteroMedics is more favorable than its competitors.

Earnings and Valuation

This table compares EnteroMedics and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EnteroMedics $571,759.00 -$22.15 million -0.11
EnteroMedics Competitors $2.01 billion $429.46 million -58.52

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

Profitability

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

Net Margins Return on Equity Return on Assets
EnteroMedics -4,399.48% -167.73% -123.00%
EnteroMedics Competitors -330.24% -33.51% -12.50%

Institutional and Insider Ownership

1.3% of EnteroMedics shares are held by institutional investors. Comparatively, 53.1% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 5.5% of EnteroMedics shares are held by insiders. Comparatively, 16.8% of shares of all “Advanced Medical Equipment & Technology” companies are held 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.

Risk & Volatility

EnteroMedics has a beta of 3.08, meaning that its share price is 208% more volatile than the S&P 500. Comparatively, EnteroMedics’ competitors have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Summary

EnteroMedics competitors beat EnteroMedics on 8 of the 12 factors compared.

EnteroMedics Company Profile

EnteroMedics Inc. (EnteroMedics) is a medical device company. The Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. The Company’s neuroblocking technology, which is referred to as VBLOC therapy, is designed to intermittently block the vagus nerve. The Company’s initial product is the Maestro Rechargeable System, which uses VBLOC therapy to limit the expansion of the stomach, help control hunger sensations between meals, reduce the frequency and intensity of stomach contractions and produce a feeling of early and prolonged fullness. The Company’s VBLOC therapy is designed to block the gastrointestinal effects of the vagus nerve by replicating a vagotomy using high-frequency, low-energy electrical impulses to intermittently interrupt naturally occurring neural impulses on the vagus nerve between the brain and the digestive system.

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