Analyzing AtriCure (NASDAQ:ATRC) & H-CYTE (OTCMKTS:HCYTD)

AtriCure (NASDAQ:ATRC) and H-CYTE (OTCMKTS:HCYTD) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

99.1% of AtriCure shares are held by institutional investors. 3.2% of AtriCure shares are held by insiders. Comparatively, 5.2% of H-CYTE shares 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.

Valuation and Earnings

This table compares AtriCure and H-CYTE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtriCure	$465.31 million	3.65	-$44.70 million	($0.95)	-36.60
H-CYTE	$1.61 million	0.32	-$4.80 million	N/A	N/A

H-CYTE has lower revenue, but higher earnings than AtriCure.

Analyst Ratings

This is a breakdown of recent ratings and price targets for AtriCure and H-CYTE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtriCure	0	0	9	0	3.00
H-CYTE	0	0	0	0	0.00

AtriCure currently has a consensus price target of $51.56, indicating a potential upside of 48.28%. Given AtriCure’s stronger consensus rating and higher probable upside, equities analysts clearly believe AtriCure is more favorable than H-CYTE.

Risk and Volatility

AtriCure has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, H-CYTE has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares AtriCure and H-CYTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AtriCure	-9.61%	-6.80%	-5.19%
H-CYTE	-450.40%	N/A	-777.68%

Summary

AtriCure beats H-CYTE on 9 of the 12 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure. In addition, the company sells Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.

About H-CYTE

H-CYTE, Inc., a biopharmaceutical company, develops and delivers various treatments for patients with chronic respiratory and pulmonary disorders in the United States. The company develops and implements treatment options in autologous cellular therapy to treat chronic lung disorders. It has a product supply agreement with Rion, LLC to develop and distribute a biologic for chronic obstructive pulmonary disease. The company is headquartered in Tampa, Florida.