Analyzing Cytori Therapeutics (CYTX) & K2M Group (KTWO)

Cytori Therapeutics (NASDAQ: KTWO) and K2M Group (NASDAQ:KTWO) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Cytori Therapeutics and K2M Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cytori Therapeutics $2.69 million 0.73 -$22.68 million ($6.50) -0.05
K2M Group $258.03 million 3.39 -$37.14 million ($0.87) -23.08

Cytori Therapeutics has higher earnings, but lower revenue than K2M Group. K2M Group is trading at a lower price-to-earnings ratio than Cytori Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cytori Therapeutics has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, K2M Group has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

37.1% of Cytori Therapeutics shares are owned by institutional investors. 0.8% of Cytori Therapeutics shares are owned by insiders. Comparatively, 6.0% of K2M Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cytori Therapeutics and K2M Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytori Therapeutics -428.14% -190.35% -65.83%
K2M Group -14.49% -16.27% -10.15%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cytori Therapeutics and K2M Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytori Therapeutics 0 1 3 0 2.75
K2M Group 0 1 10 0 2.91

Cytori Therapeutics currently has a consensus price target of $13.83, suggesting a potential upside of 4,222.92%. K2M Group has a consensus price target of $25.50, suggesting a potential upside of 26.99%. Given Cytori Therapeutics’ higher probable upside, research analysts plainly believe Cytori Therapeutics is more favorable than K2M Group.

Summary

K2M Group beats Cytori Therapeutics on 9 of the 14 factors compared between the two stocks.

About Cytori Therapeutics

Cytori Therapeutics, Inc., a therapeutics company, together with its subsidiaries, develops regenerative and oncologic therapies from its proprietary cell therapy and nanoparticle platforms for various medical conditions. Its lead drug candidate, ATI-0918, is a generic version of pegylated liposomal encapsulated doxorubicin, which is in Phase III clinical trial and used for various cancer types. The company's second nanomedicine drug candidate is, ATI-1123, a novel and new chemical entity, which has completed Phase I clinical trial and is a workhorse chemotherapeutic drug used for various cancers. It also sells Celution cell processing systems, StemSource cell and tissue banking systems, and surgical accessories and instrumentation to hospitals, clinics, physicians, researchers, and other customers for commercial and research purposes through a combination of a direct sales force, third-party distributors, independent sales representatives, and licensees. In addition, the company markets and sells its proprietary enzymatic reagents under the Celase and Intravase brands. It has operations in the Americas, Japan, EMEA, and the Asia Pacific. Cytori Therapeutics, Inc. was founded in 1996 and is headquartered in San Diego, California.

About K2M Group

K2M Group Holdings, Inc., a medical device company, provides spine and minimally invasive solutions in the United States and internationally. The company offers implants, disposables, and instruments primarily to hospitals for use by spine surgeons to treat spinal pathologies, such as deformity, trauma, and tumor. Its complex spine products include EVEREST, MESA, and MESA 2 deformity spinal systems; NILE alternative and proximal fixation spinal systems; MESA rail deformity spinal systems; Cricket spinal correction rod reduction instrumentation; CAPRI corpectomy cage systems; MESA small stature, rail small stature, and mini spinal systems; SERENGETI complex spine minimally invasive retractor systems; RAVINE complex spine lateral access systems; SANTORINI corpectomy cage systems; YUKON OCT spinal systems; and PALO ALTO cervical static corpectomy cage systems. The company's minimally invasive surgery products consist of EVEREST minimally invasive spinal and XT spinal, SERENGETI minimally invasive retractor, MOJAVE PL 3D expandable interbody, RAVINE lateral access, CASCADIA lateral 3D interbody, ALEUTIAN lateral interbody, and TERRA NOVA minimally invasive access systems. In addition, its degenerative spine products comprise EVEREST degenerative spinal, CASCADIA and ALEUTIAN interbody, SAHARA AL expandable stabilization, RHINE cervical disc, CHESAPEAKE interbody, PYRENEES cervical plate, and BLUE RIDGE hybrid cervical plate systems. Further, the company provides Balance ACS, a platform that includes tools to assist surgeons with obtaining authorization from healthcare insurers. K2M Group Holdings, Inc. markets and sells its products through direct sales employees, independent sales agencies, and distributor partners. The company was founded in 2004 and is headquartered in Leesburg, Virginia.

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