Paragon 28 (NYSE:FNA – Get Free Report) and AtriCure (NASDAQ:ATRC – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Earnings & Valuation
This table compares Paragon 28 and AtriCure’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paragon 28 | $216.39 million | 4.03 | -$47.84 million | ($0.58) | -18.16 |
| AtriCure | $399.24 million | 2.49 | -$30.44 million | ($0.80) | -26.11 |
AtriCure has higher revenue and earnings than Paragon 28. AtriCure is trading at a lower price-to-earnings ratio than Paragon 28, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Profitability
This table compares Paragon 28 and AtriCure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paragon 28 | -22.11% | -22.51% | -13.98% |
| AtriCure | -8.98% | -7.82% | -6.02% |
Institutional & Insider Ownership
63.6% of Paragon 28 shares are owned by institutional investors. Comparatively, 99.1% of AtriCure shares are owned by institutional investors. 15.3% of Paragon 28 shares are owned by insiders. Comparatively, 3.2% of AtriCure shares are owned 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Paragon 28 and AtriCure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paragon 28 | 0 | 0 | 4 | 0 | 3.00 |
| AtriCure | 0 | 0 | 7 | 0 | 3.00 |
Paragon 28 currently has a consensus price target of $17.67, suggesting a potential upside of 67.77%. AtriCure has a consensus price target of $49.78, suggesting a potential upside of 138.29%. Given AtriCure’s higher probable upside, analysts plainly believe AtriCure is more favorable than Paragon 28.
Summary
AtriCure beats Paragon 28 on 9 of the 12 factors compared between the two stocks.
About Paragon 28
Paragon 28, Inc. develops, distributes, and sells foot and ankle surgical systems in the United States and internationally. It offers plating systems, including gorilla plating systems, such as lisfranc, lapidus, lateral column, calcaneus slide, and naviculocuneiform (NC) fusion plating systems; baby gorilla plate-specific screws, navicular fracture plates, and 5th metatarsal hook plates; and silverback plating systems. The company also provides precision guide technology for various procedures consisting of fusion, a procedure to address bunion deformities that fuses two bones on the big toe; first tarsometatarsal arthrodesis; and metatarsal osteotomy for bunion correction, medial column beaming for charcot foot reconstruction, ankle fusion plating, and NC joint arthrodesis. In addition, it offers monster, mini monster, and joust beaming screw systems for use in bone reconstruction, osteotomy, arthrodesis, joint fusion, ligament fixation, fracture repair, and fracture fixation; APEX 3D total ankle replacement systems; and total talus spacers to replace the talus and bone in the ankle that connects the leg and foot. Further, the company provides forefoot or hallux valgus correction systems, including phantom intramedullary nail systems for the treatment of severe hallux valgus; and various orthobiologics comprising bone wedges, grafts, demineralized bone matrices, bone void fillers, synthetic materials, amniotic products, and a biocompatible collagen matrix, as well as PRESERVE bone graft systems for homologous application. Additionally, it offers soft tissue fixation systems, titanium sprayed polyetheretherketone implants, nitinol staple systems, stabilization systems, and curved instruments. The company serves hospitals and ambulatory surgery centers through a network of sales representatives and stocking distributors. Paragon 28, Inc. was founded in 2010 and is headquartered in Englewood, Colorado.
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.
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