Obalon Therapeutics (NASDAQ: OBLN) and Hill-Rom (NYSE:HRC) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Obalon Therapeutics has a beta of -2.81, indicating that its share price is 381% less volatile than the S&P 500. Comparatively, Hill-Rom has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Obalon Therapeutics and Hill-Rom, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Obalon Therapeutics currently has a consensus target price of $7.80, indicating a potential upside of 343.18%. Hill-Rom has a consensus target price of $100.29, indicating a potential upside of 5.56%. Given Obalon Therapeutics’ higher probable upside, research analysts plainly believe Obalon Therapeutics is more favorable than Hill-Rom.
Hill-Rom pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. Obalon Therapeutics does not pay a dividend. Hill-Rom pays out 20.7% of its earnings in the form of a dividend. Hill-Rom has increased its dividend for 7 consecutive years.
Institutional & Insider Ownership
34.1% of Obalon Therapeutics shares are owned by institutional investors. Comparatively, 80.9% of Hill-Rom shares are owned by institutional investors. 17.9% of Obalon Therapeutics shares are owned by company insiders. Comparatively, 1.9% of Hill-Rom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Obalon Therapeutics and Hill-Rom’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Obalon Therapeutics||$9.91 million||3.16||-$34.76 million||($2.08)||-0.85|
|Hill-Rom||$2.74 billion||2.30||$133.60 million||$3.86||24.61|
Hill-Rom has higher revenue and earnings than Obalon Therapeutics. Obalon Therapeutics is trading at a lower price-to-earnings ratio than Hill-Rom, indicating that it is currently the more affordable of the two stocks.
This table compares Obalon Therapeutics and Hill-Rom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hill-Rom beats Obalon Therapeutics on 13 of the 17 factors compared between the two stocks.
About Obalon Therapeutics
Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. It offers the Obalon balloon system designed to provide weight loss in obese patients. Obalon Therapeutics, Inc. was founded in 2008 and is headquartered in Carlsbad, California.
Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It provides medical surgical beds, intensive care unit beds, bariatric patient beds, lifts and other devices, non-invasive therapeutic products and surfaces, and communications technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment. The company also offers patient monitoring and diagnostics products, such as blood pressure, physical assessment, vital signs monitoring, diagnostic cardiopulmonary, diabetic retinopathy screening, and thermometry products; and respiratory health products, including Vest, VitalCough, MetaNeb, and Monarch systems to assist patients in the mobilization of retained blockages. In addition, it provides surgical solutions products comprising surgical tables, lights, and pendants; positioning devices for use in shoulder, hip, spinal, and lithotomy surgeries; platform-neutral positioning accessories; and operating room surgical safety and accessory products, such as scalpels and blades, light handle systems, skin markers, and other disposable products. The company sells and rents its products to acute and extended care facilities through direct sales force and distributors; and directly to patients in the home, as well as sells its products to primary care facilities through distributors. Further, it offers diagnostic cardiology devices, to serve the continuum of clinical care, from acute care to primary care, and clinical research organizations. Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.
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