Enovis (NYSE:ENOV – Get Rating) and Surgalign (NASDAQ:SRGA – Get Rating) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Earnings & Valuation
This table compares Enovis and Surgalign’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enovis | $1.56 billion | 2.00 | -$13.29 million | ($0.20) | -287.14 |
| Surgalign | $81.98 million | 0.14 | -$54.60 million | ($8.09) | -0.15 |
Enovis has higher revenue and earnings than Surgalign. Enovis is trading at a lower price-to-earnings ratio than Surgalign, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enovis | 0 | 2 | 7 | 0 | 2.78 |
| Surgalign | 0 | 0 | 1 | 0 | 3.00 |
Enovis currently has a consensus price target of $63.13, indicating a potential upside of 9.92%. Surgalign has a consensus price target of $3.50, indicating a potential upside of 191.67%. Given Surgalign’s stronger consensus rating and higher probable upside, analysts plainly believe Surgalign is more favorable than Enovis.
Insider and Institutional Ownership
96.7% of Enovis shares are held by institutional investors. Comparatively, 12.8% of Surgalign shares are held by institutional investors. 5.1% of Enovis shares are held by company insiders. Comparatively, 10.3% of Surgalign shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Enovis and Surgalign’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enovis | -0.46% | 3.30% | 2.28% |
| Surgalign | -66.61% | -983.11% | -84.57% |
Volatility and Risk
Enovis has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Surgalign has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Summary
Enovis beats Surgalign on 10 of the 14 factors compared between the two stocks.
About Enovis
Enovis Corporation operates as a medical technology company worldwide. It develops, manufactures, and distributes medical device products used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries. It offers rigid and soft orthopedic bracings, hot and cold therapy products, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management, and physical therapy products; and a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger. Enovis Corporation sells its products through independent distributors, such as healthcare professionals, consumer retail stores, and pharmacies; and directly under the DJO brand. The company was formerly known as Colfax Corporation. Enovis Corporation is headquartered in Wilmington, Delaware.
About Surgalign
Surgalign Holdings, Inc. is a medical technology company, which engages in designing, developing, and manufacturing biologic metal and synthetic implants. Its products portfolio include cervical fixation, The Streamline (TL) fixation, motion preservation, orthobiologics, cervical inter-body fusion, TL IBF, and SI joint fusion. It offers coflex interlaminar stabilization device, SImmetry sacroiliac joint fusion system, and Fortilink IBF system with TETRAfuse?3D technology. The company was founded on February 12, 1998 and is headquartered in Deerfield, IL.
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