ReShape Lifesciences (NASDAQ:RSLS – Get Free Report) and Quipt Home Medical (NASDAQ:QIPT – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Profitability
This table compares ReShape Lifesciences and Quipt Home Medical’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ReShape Lifesciences | -112.11% | -208.37% | -108.96% |
Quipt Home Medical | -1.95% | -4.51% | -2.01% |
Valuation & Earnings
This table compares ReShape Lifesciences and Quipt Home Medical”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ReShape Lifesciences | $8.68 million | 0.32 | -$11.39 million | N/A | N/A |
Quipt Home Medical | $255.81 million | 0.46 | -$2.78 million | ($0.11) | -24.73 |
Risk and Volatility
ReShape Lifesciences has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Quipt Home Medical has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Insider & Institutional Ownership
22.1% of ReShape Lifesciences shares are owned by institutional investors. Comparatively, 42.8% of Quipt Home Medical shares are owned by institutional investors. 0.1% of ReShape Lifesciences shares are owned by company insiders. Comparatively, 4.2% of Quipt Home Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for ReShape Lifesciences and Quipt Home Medical, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ReShape Lifesciences | 0 | 1 | 0 | 0 | 2.00 |
Quipt Home Medical | 1 | 0 | 3 | 2 | 3.00 |
Quipt Home Medical has a consensus price target of $6.25, indicating a potential upside of 129.78%. Given Quipt Home Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Quipt Home Medical is more favorable than ReShape Lifesciences.
Summary
Quipt Home Medical beats ReShape Lifesciences on 12 of the 13 factors compared between the two stocks.
About ReShape Lifesciences
ReShape Lifesciences Inc. provides products and services that manages and treat obesity and metabolic diseases in the United States, Australia, Europe, and internationally. The company's product portfolio includes Lap-Band System, a minimally invasive long-term treatment of severe obesity and more invasive surgical stapling procedures, such as the gastric bypass or sleeve gastrectomy; Lap-Band 2.0 System, an adjustable postoperatively to increase or decrease the pressure to the band in order to optimize an individual's comfort and therapy effectiveness; and ReShape Calibration Tubes, that fits the lesser curvature of the stomach to reach the pylorus. It is also involved in developing ReShape Obalon Balloon System, consists of a swallowable capsule that tracks and displays the location of the balloon during placement; and ReShape Diabetes Bloc-Stim Neuromodulation (DBSN) device, a technology that is in development for the treatment of type 2 diabetes mellitus. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in 2017. ReShape Lifesciences Inc. was incorporated in 2002 and is headquartered in Irvine, California.
About Quipt Home Medical
Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.
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