EnteroMedics (ETRM) & Thoratec (THOR) Head-To-Head Review

EnteroMedics (NASDAQ: ETRM) and Thoratec (NASDAQ:THOR) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Institutional & Insider Ownership

1.3% of EnteroMedics shares are held by institutional investors. 5.5% of EnteroMedics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for EnteroMedics and Thoratec, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnteroMedics 0 0 1 0 3.00
Thoratec 0 0 0 0 N/A

EnteroMedics currently has a consensus target price of $11.03, indicating a potential upside of 465.64%. Given EnteroMedics’ higher probable upside, analysts clearly believe EnteroMedics is more favorable than Thoratec.

Earnings and Valuation

This table compares EnteroMedics and Thoratec’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EnteroMedics $571,759.00 28.29 -$22.15 million ($16.72) -0.12
Thoratec N/A N/A N/A N/A N/A

Thoratec has higher revenue, but lower earnings than EnteroMedics.

Profitability

This table compares EnteroMedics and Thoratec’s 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%
Thoratec 10.29% 8.02% 6.71%

Summary

EnteroMedics beats Thoratec on 5 of the 8 factors compared between the two stocks.

About EnteroMedics

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.

About Thoratec

Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.

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