Fractyl Health (NASDAQ:GUTS – Get Free Report) and Surmodics (NASDAQ:SRDX – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Earnings & Valuation
This table compares Fractyl Health and Surmodics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fractyl Health | $120,000.00 | 837.74 | -$77.09 million | ($12.19) | -0.17 |
| Surmodics | $126.08 million | 4.47 | -$11.54 million | ($0.81) | -48.56 |
Surmodics has higher revenue and earnings than Fractyl Health. Surmodics is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fractyl Health | 0 | 0 | 3 | 0 | 3.00 |
| Surmodics | 0 | 4 | 0 | 0 | 2.00 |
Fractyl Health currently has a consensus target price of $22.00, suggesting a potential upside of 952.63%. Surmodics has a consensus target price of $50.00, suggesting a potential upside of 27.13%. Given Fractyl Health’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fractyl Health is more favorable than Surmodics.
Profitability
This table compares Fractyl Health and Surmodics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fractyl Health | -64,849.48% | N/A | -57.21% |
| Surmodics | -9.15% | -3.79% | -2.55% |
Institutional & Insider Ownership
96.6% of Surmodics shares are held by institutional investors. 8.9% of Surmodics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Surmodics beats Fractyl Health on 7 of the 13 factors compared between the two stocks.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
About Surmodics
Surmodics, Inc., together with its subsidiaries, provides performance coating technologies for intravascular medical devices, and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates through two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for neurovascular, peripheral, coronary, and structural heart, and other markets, as well as manufacturing of vascular intervention medical devices, including drug-coated balloons, mechanical thrombectomy devices, and radial access balloon catheters and guide sheaths. The IVD segment develops, manufactures, and sells chemical and biological components for in vitro diagnostic immunoassay and molecular tests, as well as diagnostic and biomedical research markets. This segment offers protein stabilizers, substrates, surface coatings, and antigens. The company was founded in 1979 and is headquartered in Eden Prairie, Minnesota.
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