Financial Analysis: Pathfinder Cell Therapy (OTCMKTS:PFND) vs. Establishment Labs (NASDAQ:ESTA)

Pathfinder Cell Therapy (OTCMKTS:PFND) and Establishment Labs (NASDAQ:ESTA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Institutional & Insider Ownership

72.9% of Establishment Labs shares are owned by institutional investors. 15.1% of Pathfinder Cell Therapy shares are owned by insiders. Comparatively, 11.4% of Establishment Labs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Pathfinder Cell Therapy and Establishment Labs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Cell Therapy	N/A	N/A	N/A	N/A	N/A
Establishment Labs	$165.15 million	6.41	-$78.50 million	($2.58)	-14.65

Pathfinder Cell Therapy has higher earnings, but lower revenue than Establishment Labs.

Analyst Ratings

This is a summary of current ratings and recommmendations for Pathfinder Cell Therapy and Establishment Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Cell Therapy	0	0	0	0	0.00
Establishment Labs	0	1	4	0	2.80

Establishment Labs has a consensus target price of $60.60, suggesting a potential upside of 60.36%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts plainly believe Establishment Labs is more favorable than Pathfinder Cell Therapy.

Profitability

This table compares Pathfinder Cell Therapy and Establishment Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathfinder Cell Therapy	N/A	N/A	N/A
Establishment Labs	-46.13%	-184.55%	-24.81%

Summary

Establishment Labs beats Pathfinder Cell Therapy on 5 of the 9 factors compared between the two stocks.

About Pathfinder Cell Therapy

Pathfinder Cell Therapy, Inc., a development stage regenerative medicine company, focuses on developing novel cell-derived and related therapies for the treatment of various diseases and medical conditions characterized by organ-specific cell damage. It identifies diabetes, renal disease, myocardial infarction, peripheral vascular disease, and other diseases as potential indications for therapies based on its technology. The company was founded in 2008 and is headquartered in Cambridge, Massachusetts.

About Establishment Labs

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.