Retractable Technologies (NYSE:RVP – Get Free Report) and TELA Bio (NASDAQ:TELA – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings for Retractable Technologies and TELA Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Retractable Technologies | 0 | 0 | 0 | 0 | 0.00 |
| TELA Bio | 0 | 1 | 3 | 0 | 2.75 |
TELA Bio has a consensus target price of $7.25, indicating a potential upside of 610.78%. Given TELA Bio’s stronger consensus rating and higher possible upside, analysts clearly believe TELA Bio is more favorable than Retractable Technologies.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Retractable Technologies | $33.05 million | 0.67 | -$7.01 million | ($0.41) | -1.80 |
| TELA Bio | $69.30 million | 0.58 | -$46.66 million | ($1.39) | -0.73 |
Retractable Technologies has higher earnings, but lower revenue than TELA Bio. Retractable Technologies is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Retractable Technologies has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500. Comparatively, TELA Bio has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Insider & Institutional Ownership
7.6% of Retractable Technologies shares are owned by institutional investors. Comparatively, 94.3% of TELA Bio shares are owned by institutional investors. 57.1% of Retractable Technologies shares are owned by company insiders. Comparatively, 6.0% of TELA Bio shares are owned by company 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.
Profitability
This table compares Retractable Technologies and TELA Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Retractable Technologies | -41.11% | -17.15% | -9.33% |
| TELA Bio | -60.49% | -556.18% | -63.13% |
Summary
Retractable Technologies beats TELA Bio on 8 of the 14 factors compared between the two stocks.
About Retractable Technologies
Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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