Analyzing Bone Biologics (NASDAQ:BBLG) & Establishment Labs (NASDAQ:ESTA)

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

Insider & Institutional Ownership

72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 34.3% of Bone Biologics shares are owned by institutional investors. 11.4% of Establishment Labs shares are owned by insiders. Comparatively, 7.5% of Bone Biologics shares are owned by 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.

Analyst Recommendations

This is a summary of current recommendations for Establishment Labs and Bone Biologics, as provided by MarketBeat.com.

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

Establishment Labs presently has a consensus price target of $60.60, suggesting a potential upside of 51.46%. Given Establishment Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Establishment Labs is more favorable than Bone Biologics.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$153.07 million	7.32	-$78.50 million	($2.58)	-15.51
Bone Biologics	N/A	N/A	-$8.95 million	N/A	N/A

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

Profitability

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

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

Volatility and Risk

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

Summary

Establishment Labs beats Bone Biologics on 9 of the 12 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 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.