Critical Comparison: Restoration Robotics (HAIR) vs. Obalon Therapeutics (OBLN)

Restoration Robotics (NASDAQ: OBLN) and Obalon Therapeutics (NASDAQ:OBLN) 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, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Restoration Robotics and Obalon Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restoration Robotics 0 0 3 0 3.00
Obalon Therapeutics 0 2 4 0 2.67

Restoration Robotics currently has a consensus target price of $9.00, indicating a potential upside of 242.21%. Obalon Therapeutics has a consensus target price of $6.92, indicating a potential upside of 163.99%. Given Restoration Robotics’ stronger consensus rating and higher probable upside, research analysts plainly believe Restoration Robotics is more favorable than Obalon Therapeutics.

Earnings and Valuation

This table compares Restoration Robotics and Obalon Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Restoration Robotics $21.30 million 3.60 -$17.84 million ($2.50) -1.05
Obalon Therapeutics $9.91 million 4.71 -$34.76 million ($2.08) -1.26

Restoration Robotics has higher revenue and earnings than Obalon Therapeutics. Obalon Therapeutics is trading at a lower price-to-earnings ratio than Restoration Robotics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Restoration Robotics and Obalon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restoration Robotics -104.01% N/A -89.25%
Obalon Therapeutics -205.20% -72.76% -46.80%

Insider and Institutional Ownership

29.7% of Restoration Robotics shares are held by institutional investors. Comparatively, 31.2% of Obalon Therapeutics shares are held by institutional investors. 37.8% of Restoration Robotics shares are held by insiders. Comparatively, 17.9% of Obalon Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Restoration Robotics beats Obalon Therapeutics on 8 of the 13 factors compared between the two stocks.

About Restoration Robotics

Restoration Robotics, Inc., a medical device company, develops and commercializes image-guided robotic systems in the United States and internationally. The company offers ARTAS System, a physician-assisted robotic system that identifies and dissects hair follicular units directly from the scalp and creates recipient implant sites. Its system includes the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. The company was founded in 2002 and is headquartered in San Jose, California.

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.

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