Critical Comparison: Allurion Technologies (NYSE:ALUR) vs. Smith & Nephew SNATS (NYSE:SNN)

Allurion Technologies (NYSE:ALUR) and Smith & Nephew SNATS (NYSE:SNN) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Allurion Technologies and Smith & Nephew SNATS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allurion Technologies	-86.05%	N/A	-41.49%
Smith & Nephew SNATS	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Allurion Technologies and Smith & Nephew SNATS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allurion Technologies	0	1	2	1	3.00
Smith & Nephew SNATS	0	6	0	0	2.00

Allurion Technologies currently has a consensus target price of $22.83, indicating a potential upside of 837.71%. Smith & Nephew SNATS has a consensus target price of $28.00, indicating a potential downside of 5.63%. Given Allurion Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Allurion Technologies is more favorable than Smith & Nephew SNATS.

Earnings & Valuation

This table compares Allurion Technologies and Smith & Nephew SNATS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allurion Technologies	$32.11 million	0.57	-$26.15 million	($12.50)	-0.19
Smith & Nephew SNATS	$5.81 billion	2.24	$412.00 million	$2.16	13.74

Smith & Nephew SNATS has higher revenue and earnings than Allurion Technologies. Allurion Technologies is trading at a lower price-to-earnings ratio than Smith & Nephew SNATS, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Allurion Technologies has a beta of -0.47, indicating that its stock price is 147% less volatile than the S&P 500. Comparatively, Smith & Nephew SNATS has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

21.4% of Allurion Technologies shares are owned by institutional investors. Comparatively, 25.6% of Smith & Nephew SNATS shares are owned by institutional investors. 9.6% of Allurion Technologies shares are owned by company insiders. Comparatively, 1.0% of Smith & Nephew SNATS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Smith & Nephew SNATS beats Allurion Technologies on 9 of the 14 factors compared between the two stocks.

About Allurion Technologies

Allurion Technologies Inc. focuses on ending obesity with a weight loss platform to treat people who are overweight. Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon), as well as offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite. Allurion Technologies Inc. is headquartered in Natick, Massachusetts.

About Smith & Nephew SNATS

Smith & Nephew plc engages in the development, manufacture, marketing, and sale of medical devices. It operates through the following segments: Orthopaedics, Sports Medicine and ENT, and Advanced Wound Management. The Orthopaedics and Sports Medicine and ENT segment consists of the following businesses: knee implants, hip implants, other reconstruction, trauma, sports medicine joint repair, arthroscopic enabling technologies, and ENT. The Advanced Wound Management segment includes advanced wound care, advanced wound bioactives, and advanced wound devices businesses. The company was founded in 1856 and is headquartered in Watford, the United Kingdom.