Establishment Labs (NASDAQ:ESTA – Get Free Report) and Envoy Medical (NASDAQ:COCH – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Institutional & Insider Ownership
72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 8.6% of Envoy Medical shares are held by institutional investors. 11.4% of Establishment Labs shares are held by company insiders. Comparatively, 60.5% of Envoy Medical shares are held 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.
Profitability
This table compares Establishment Labs and Envoy Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Establishment Labs | -46.13% | -184.55% | -24.81% |
| Envoy Medical | -7,607.55% | N/A | -262.28% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Establishment Labs | $166.03 million | 5.24 | -$78.50 million | ($2.98) | -10.11 |
| Envoy Medical | $225,000.00 | 119.43 | -$29.91 million | ($1.41) | -0.89 |
Envoy Medical has lower revenue, but higher earnings than Establishment Labs. Establishment Labs is trading at a lower price-to-earnings ratio than Envoy Medical, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Establishment Labs has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Envoy Medical has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Establishment Labs and Envoy Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 0 | 1 | 4 | 0 | 2.80 |
| Envoy Medical | 0 | 0 | 2 | 0 | 3.00 |
Establishment Labs presently has a consensus target price of $57.40, suggesting a potential upside of 90.44%. Envoy Medical has a consensus target price of $9.00, suggesting a potential upside of 614.29%. Given Envoy Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Envoy Medical is more favorable than Establishment Labs.
Summary
Envoy Medical beats Establishment Labs on 9 of the 14 factors compared between the two stocks.
About Establishment Labs
Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.
About Envoy Medical
Envoy Medical, Inc., a hearing health company, provides medical technologies for the hearing loss spectrum. Its products include personal sound amplification devices; hearing aids; Esteem fully implanted active middle ear implants; auditory osseointegrated implants; and Acclaim cochlear implants. The company was formerly known as Envoy Medical Corporation and changed its name to Envoy Medical, Inc. in September 2023. Envoy Medical, Inc. was founded in 1995 and is headquartered in White Bear Lake, Minnesota.
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