Financial Review: Eargo (EAR) versus Its Peers

Eargo (NASDAQ: EAR) is one of 40 publicly-traded companies in the “Surgical appliances & supplies” industry, but how does it contrast to its rivals? We will compare Eargo to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Eargo and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eargo 0 0 4 0 3.00
Eargo Competitors 300 1214 2127 84 2.54

Eargo currently has a consensus price target of $45.33, indicating a potential upside of 19.33%. As a group, “Surgical appliances & supplies” companies have a potential upside of 2.70%. Given Eargo’s stronger consensus rating and higher probable upside, research analysts plainly believe Eargo is more favorable than its rivals.

Institutional and Insider Ownership

47.6% of Eargo shares are held by institutional investors. Comparatively, 54.6% of shares of all “Surgical appliances & supplies” companies are held by institutional investors. 9.0% of shares of all “Surgical appliances & supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Eargo and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eargo N/A N/A N/A
Eargo Competitors -217.15% -60.23% -13.89%

Valuation and Earnings

This table compares Eargo and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Eargo $69.15 million -$39.85 million -10.00
Eargo Competitors $1.11 billion $144.99 million 21.41

Eargo’s rivals have higher revenue and earnings than Eargo. Eargo is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

About Eargo

Eargo, Inc., a medical device company, develops and sells hearing aids to assist people with hearing loss in the United States. It sells its products through online stores. The company was formerly known as Aria Innovations, Inc. and changed its name to Eargo, Inc. in November 2014. Eargo, Inc. was founded in 2010 and is headquartered in San Jose, California.

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