Financial Analysis: Glaukos (GKOS) versus Amedica (AMDA)

Glaukos (NYSE: GKOS) and Amedica (NASDAQ:AMDA) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership

99.2% of Glaukos shares are owned by institutional investors. Comparatively, 62.5% of Amedica shares are owned by institutional investors. 16.4% of Glaukos shares are owned by insiders. Comparatively, 0.1% of Amedica shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Glaukos and Amedica, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glaukos 0 0 6 0 3.00
Amedica 0 2 0 0 2.00

Glaukos presently has a consensus price target of $45.50, indicating a potential upside of 59.82%. Amedica has a consensus price target of $60.00, indicating a potential upside of 1,566.67%. Given Amedica’s higher possible upside, analysts plainly believe Amedica is more favorable than Glaukos.

Profitability

This table compares Glaukos and Amedica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glaukos -0.64% 3.50% 3.05%
Amedica -71.07% -73.86% -36.96%

Valuation & Earnings

This table compares Glaukos and Amedica’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glaukos $114.40 million 8.60 $4.52 million ($0.03) -949.00
Amedica $15.23 million 0.71 -$14.76 million ($1.93) -1.87

Glaukos has higher revenue and earnings than Amedica. Glaukos is trading at a lower price-to-earnings ratio than Amedica, indicating that it is currently the more affordable of the two stocks.

Summary

Glaukos beats Amedica on 11 of the 13 factors compared between the two stocks.

Glaukos Company Profile

Glaukos Corporation is an ophthalmic medical technology company. The Company focuses on the development and commercialization of products and procedures for the treatment of glaucoma. It offers iStent, a micro-invasive glaucoma surgery (MIGS) device. The iStent is a micro-bypass stent inserted through the small corneal incision made during cataract surgery and placed into Schlemm’s canal, a circular channel in the eye that collects aqueous humor and delivers it back into the bloodstream. It is developing three additional pipeline products: the iStent Inject, the iStent Supra and iDose. The iStent Inject includes two stents pre-loaded in an auto-injection inserter. The iStent Supra is designed to access an alternative drainage space within the eye. iDose is a drug delivery system that is designed to be implanted in the eye to continuously deliver therapeutic levels of medication for extended periods of time to lower intraocular pressure in glaucoma patients.

Amedica Company Profile

Amedica Corporation is a commercial biomaterial company. The Company is a vertically integrated silicon nitride orthopedic medical device manufacturer. It is focused on using its silicon nitride ceramic technology platform to develop, manufacture and sell a range of medical devices. It is also engaged in developing wear- and corrosion-resistant implant components for hip and knee arthroplasty. The Company markets its Valeo family of silicon nitride interbody spinal fusion devices in the United States, Europe and Brazil for use in the cervical and thoracolumbar areas of the spine. In addition to its silicon nitride-based spinal fusion products, it markets a line of non-silicon nitride spinal surgery products, which allows the Company to provide surgeons and hospitals with a solution for spinal procedures. Its Valeo interbody spinal fusion devices include Anterior Lumbar, Posterior Lumbar, Oblique Lumbar, Transforaminal Lumbar, Lateral Lumbar, Cervical and Corpectomy.

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