Reviewing Biostage (OTCMKTS:BSTG) and Apollo Endosurgery (OTCMKTS:APEN)

Biostage (OTCMKTS:BSTG) and Apollo Endosurgery (NASDAQ:APEN) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Biostage and Apollo Endosurgery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Biostage N/A -735.80% -400.00%
Apollo Endosurgery -72.34% -565.93% -46.48%

Analyst Ratings

This is a breakdown of current ratings for Biostage and Apollo Endosurgery, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biostage 0 0 0 0 N/A
Apollo Endosurgery 0 1 0 0 2.00

Apollo Endosurgery has a consensus price target of $2.00, suggesting a potential upside of 23.46%. Given Apollo Endosurgery’s higher probable upside, analysts clearly believe Apollo Endosurgery is more favorable than Biostage.

Institutional & Insider Ownership

0.2% of Biostage shares are held by institutional investors. Comparatively, 41.0% of Apollo Endosurgery shares are held by institutional investors. 9.7% of Biostage shares are held by company insiders. Comparatively, 37.2% of Apollo Endosurgery shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Biostage and Apollo Endosurgery’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Biostage N/A N/A -$8.33 million N/A N/A
Apollo Endosurgery $50.71 million 0.67 -$27.43 million ($1.53) -1.06

Biostage has higher earnings, but lower revenue than Apollo Endosurgery.

Volatility and Risk

Biostage has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500. Comparatively, Apollo Endosurgery has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Summary

Apollo Endosurgery beats Biostage on 8 of the 10 factors compared between the two stocks.

Biostage Company Profile

Biostage, Inc., a biotechnology company, engages in developing bioengineered organ implants based on its Cellframe technology. The company's Cellframe technology combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan organ implants. It is developing bioengineered organ implants, which addresses the damage of the esophagus, bronchus, and trachea due to cancer, infection, trauma, or congenital abnormalities. The company was formerly known as Harvard Apparatus Regenerative Technology, Inc. and changed its name to Biostage, Inc. in March 2016. Biostage, Inc. was founded in 2007 and is headquartered in Holliston, Massachusetts.

Apollo Endosurgery Company Profile

Apollo Endosurgery, Inc., a medical technology company, focuses on the design, development, and commercialization of medical devices. Its products include OverStitch and OverStitch Sx Endoscopic Suturing System that enables advanced endoscopic procedures by allowing physicians to place full thickness sutures and secure the approximation of tissue through a flexible endoscope; Orbera365 Managed Weight Loss System; and the BIB for the treatment of overweight and obese adults. The company sells its products to medical services providers; and hospitals, outpatient surgical centers, clinics, and physicians in the United States, Brazil, Australia, and other European countries. Apollo Endosurgery, Inc. was founded in 2005 and is headquartered in Austin, Texas.

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