Critical Analysis: Apollo Endosurgery (NASDAQ:APEN) and The Competition

Apollo Endosurgery (NASDAQ: APEN) is one of 106 public companies in the “Surgical & medical instruments” industry, but how does it compare to its rivals? We will compare Apollo Endosurgery to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Apollo Endosurgery and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Endosurgery 0 0 4 0 3.00
Apollo Endosurgery Competitors 537 1984 3882 134 2.55

Apollo Endosurgery presently has a consensus target price of $10.25, indicating a potential upside of 56.73%. As a group, “Surgical & medical instruments” companies have a potential upside of 3.60%. Given Apollo Endosurgery’s stronger consensus rating and higher possible upside, equities analysts plainly believe Apollo Endosurgery is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Apollo Endosurgery -41.50% -61.61% -26.55%
Apollo Endosurgery Competitors -74.95% -78.77% -19.30%

Insider and Institutional Ownership

31.8% of Apollo Endosurgery shares are held by institutional investors. Comparatively, 46.6% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 52.8% of Apollo Endosurgery shares are held by company insiders. Comparatively, 15.8% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Apollo Endosurgery and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Apollo Endosurgery $64.31 million -$27.29 million -3.25
Apollo Endosurgery Competitors $1.51 billion $110.21 million -197.80

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

Volatility & Risk

Apollo Endosurgery has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Apollo Endosurgery’s rivals have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Apollo Endosurgery Company Profile

Apollo Endosurgery, Inc., a medical technology company, focuses on the design, development, and commercialization of medical devices for the treatment of obesity. The company offers endo-bariatric products, such as Orbera intragastric balloon system and Orbera365 Managed Weight Loss System, which are non-surgical alternatives for the treatment of overweight and obese adults; and OverStitch endoscopic suturing system that enables endoscopic procedures by allowing physicians to place full-thickness sutures and secure the approximation of tissue through flexible endoscope. It also provides surgical products, including Lap-Band system, a system designed to provide minimally invasive long-term treatment of obesity; and accessories used in laparoscopic bariatric surgeries. The company sells its products primarily in the United States, Europe, Australia, Brazil, and Canada. Apollo Endosurgery, Inc. was founded in 2005 and is headquartered in Austin, Texas.

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