Valeritas (OTCMKTS:VLRXQ – Get Rating) and ReShape Lifesciences (OTCMKTS:RSLS – Get Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Insider & Institutional Ownership
16.9% of ReShape Lifesciences shares are owned by institutional investors. 1.0% of Valeritas shares are owned by insiders. Comparatively, 8.1% of ReShape Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Valeritas and ReShape Lifesciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Valeritas and ReShape Lifesciences’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ReShape Lifesciences||$13.60 million||1.13||-$61.93 million||($4.88)||-0.17|
Valeritas has higher earnings, but lower revenue than ReShape Lifesciences.
This is a summary of current recommendations and price targets for Valeritas and ReShape Lifesciences, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ReShape Lifesciences has a consensus target price of $4.75, suggesting a potential upside of 475.76%. Given ReShape Lifesciences’ higher probable upside, analysts clearly believe ReShape Lifesciences is more favorable than Valeritas.
ReShape Lifesciences beats Valeritas on 5 of the 8 factors compared between the two stocks.
About Valeritas (Get Rating)
Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States. The company offers V-Go, a wearable insulin delivery device for basal-bolus therapy. It also develops V-Go Prefill that is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go SIM for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.
About ReShape Lifesciences (Get Rating)
ReShape Lifesciences Inc., a medical device company, 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; and ReShape Vest system, an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach to enable weight loss in obese and morbidly obese patients without cutting or permanently removing portions of the stomach, or bypassing any portion of the gastrointestinal tract. It also offers ReShapeCare virtual health coaching program, a virtual telehealth weight management program that supports healthy lifestyle changes for all medically managed weight-loss patients; and ReShape Diabetes Bloc-Stim Neuromodulation, a technology that is in preclinical development for the treatment of type 2 diabetes mellitus. In addition, the company provides Obalon Balloon System, a swallowable capsule used to track and display the location of the balloon during placement. 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 San Clemente, California.
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