AtriCure (NASDAQ:ATRC – Get Free Report) and Surmodics (NASDAQ:SRDX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Insider & Institutional Ownership
99.1% of AtriCure shares are owned by institutional investors. Comparatively, 96.6% of Surmodics shares are owned by institutional investors. 3.2% of AtriCure shares are owned by company insiders. Comparatively, 8.9% of Surmodics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares AtriCure and Surmodics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AtriCure | $447.57 million | 3.49 | -$30.44 million | ($0.83) | -38.59 |
| Surmodics | $126.08 million | 4.48 | -$11.54 million | ($0.81) | -48.79 |
Analyst Ratings
This is a summary of recent recommendations for AtriCure and Surmodics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AtriCure | 0 | 0 | 8 | 0 | 3.00 |
| Surmodics | 0 | 4 | 0 | 0 | 2.00 |
AtriCure currently has a consensus price target of $42.00, suggesting a potential upside of 31.13%. Surmodics has a consensus price target of $50.00, suggesting a potential upside of 26.52%. Given AtriCure’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AtriCure is more favorable than Surmodics.
Profitability
This table compares AtriCure and Surmodics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AtriCure | -8.70% | -8.12% | -6.21% |
| Surmodics | -9.15% | -3.79% | -2.55% |
Risk & Volatility
AtriCure has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Surmodics has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Summary
AtriCure beats Surmodics on 8 of the 14 factors compared between the two stocks.
About AtriCure
AtriCure, Inc. develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure. In addition, the company sells Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.
About Surmodics
Surmodics, Inc., together with its subsidiaries, provides performance coating technologies for intravascular medical devices, and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates through two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for neurovascular, peripheral, coronary, and structural heart, and other markets, as well as manufacturing of vascular intervention medical devices, including drug-coated balloons, mechanical thrombectomy devices, and radial access balloon catheters and guide sheaths. The IVD segment develops, manufactures, and sells chemical and biological components for in vitro diagnostic immunoassay and molecular tests, as well as diagnostic and biomedical research markets. This segment offers protein stabilizers, substrates, surface coatings, and antigens. The company was founded in 1979 and is headquartered in Eden Prairie, Minnesota.
Receive News & Ratings for AtriCure Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AtriCure and related companies with MarketBeat.com's FREE daily email newsletter.
