Head to Head Analysis: PROCEPT BioRobotics (NASDAQ:PRCT) vs. Rapid Micro Biosystems (NASDAQ:RPID)

PROCEPT BioRobotics (NASDAQ:PRCT) and Rapid Micro Biosystems (NASDAQ:RPID) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares PROCEPT BioRobotics and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-31.02%	-25.13%	-18.63%
Rapid Micro Biosystems	-140.30%	-95.40%	-58.85%

Valuation and Earnings

This table compares PROCEPT BioRobotics and Rapid Micro Biosystems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$308.05 million	4.24	-$95.57 million	($1.71)	-13.56
Rapid Micro Biosystems	$33.59 million	2.94	-$47.12 million	($1.07)	-2.03

Rapid Micro Biosystems has lower revenue, but higher earnings than PROCEPT BioRobotics. PROCEPT BioRobotics is trading at a lower price-to-earnings ratio than Rapid Micro Biosystems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PROCEPT BioRobotics and Rapid Micro Biosystems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	2	4	8	0	2.43
Rapid Micro Biosystems	1	0	1	0	2.00

PROCEPT BioRobotics presently has a consensus target price of $40.82, indicating a potential upside of 76.02%. Rapid Micro Biosystems has a consensus target price of $8.00, indicating a potential upside of 268.66%. Given Rapid Micro Biosystems’ higher possible upside, analysts plainly believe Rapid Micro Biosystems is more favorable than PROCEPT BioRobotics.

Insider and Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 52.6% of Rapid Micro Biosystems shares are held by institutional investors. 6.6% of PROCEPT BioRobotics shares are held by company insiders. Comparatively, 30.0% of Rapid Micro Biosystems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

PROCEPT BioRobotics has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Rapid Micro Biosystems has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Summary

PROCEPT BioRobotics beats Rapid Micro Biosystems on 8 of the 14 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.