K2M Group Holdings (NASDAQ: KTWO) and Intersect ENT (NASDAQ:XENT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Earnings and Valuation
This table compares K2M Group Holdings and Intersect ENT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|K2M Group Holdings||$248.68 million||3.64||-$2.00 million||($0.96)||-21.77|
|Intersect ENT||$87.16 million||9.80||-$19.71 million||($0.70)||-41.79|
K2M Group Holdings has higher revenue and earnings than Intersect ENT. Intersect ENT is trading at a lower price-to-earnings ratio than K2M Group Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares K2M Group Holdings and Intersect ENT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|K2M Group Holdings||-16.21%||-15.45%||-10.50%|
This is a summary of current ratings and target prices for K2M Group Holdings and Intersect ENT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|K2M Group Holdings||0||0||6||0||3.00|
K2M Group Holdings presently has a consensus price target of $28.17, suggesting a potential upside of 34.77%. Intersect ENT has a consensus price target of $27.11, suggesting a potential downside of 7.31%. Given K2M Group Holdings’ stronger consensus rating and higher possible upside, equities research analysts clearly believe K2M Group Holdings is more favorable than Intersect ENT.
Insider & Institutional Ownership
97.9% of K2M Group Holdings shares are owned by institutional investors. Comparatively, 83.1% of Intersect ENT shares are owned by institutional investors. 5.8% of K2M Group Holdings shares are owned by company insiders. Comparatively, 13.7% of Intersect ENT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
K2M Group Holdings has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Intersect ENT has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
K2M Group Holdings beats Intersect ENT on 9 of the 13 factors compared between the two stocks.
About K2M Group Holdings
K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.
About Intersect ENT
Intersect ENT, Inc. is a commercial-stage drug-device company. The Company develops drugs for patients with ear, nose and throat (ENT) conditions. The Company has developed a drug releasing bioabsorbable implant technology that enables targeted and sustained release of therapeutic agents. This targeted drug delivery technology is designed to allow ENT physicians to manage patient care. The Company’s commercial products are the PROPEL and PROPEL mini drug-releasing implants for patients undergoing sinus surgery to treat chronic sinusitis. The Company is building a portfolio of products based on its drug releasing bio-absorbable implant technology that are designed to provide localized drug delivery to treat patients across the continuum of care in chronic sinusitis. The Company markets PROPEL, which is indicated for use following ethmoid sinus surgery, and PROPEL Mini, which is indicated for use following ethmoid and/or frontal sinus surgery.
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