Critical Review: AtriCure (NASDAQ:ATRC) & Repare Therapeutics (NASDAQ:PYPD)

Repare Therapeutics (NASDAQ:PYPD) and AtriCure (NASDAQ:ATRC) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

5.2% of Repare Therapeutics shares are owned by institutional investors. Comparatively, 93.5% of AtriCure shares are owned by institutional investors. 5.8% of AtriCure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Repare Therapeutics and AtriCure’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Repare Therapeutics N/A N/A -$6.91 million N/A N/A
AtriCure $230.81 million 8.17 -$35.19 million ($1.07) -39.24

Repare Therapeutics has higher earnings, but lower revenue than AtriCure.

Analyst Ratings

This is a breakdown of recent recommendations for Repare Therapeutics and AtriCure, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Repare Therapeutics 0 0 4 0 3.00
AtriCure 0 0 7 0 3.00

Repare Therapeutics currently has a consensus target price of $25.00, indicating a potential upside of 84.50%. AtriCure has a consensus target price of $52.71, indicating a potential upside of 25.54%. Given Repare Therapeutics’ higher probable upside, analysts plainly believe Repare Therapeutics is more favorable than AtriCure.

Profitability

This table compares Repare Therapeutics and AtriCure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Repare Therapeutics N/A N/A N/A
AtriCure -23.64% -19.55% -9.56%

Summary

Repare Therapeutics beats AtriCure on 5 of the 9 factors compared between the two stocks.

Repare Therapeutics Company Profile

PolyPid Ltd. develops, manufactures, and commercializes products based on polymer-lipid encapsulation matrix platform. Its products include D-PLEX, an antibiotic drug reservoir that is implanted during surgery to prevent and treat surgical site infections; D-PLEX100 for the prevention of post-abdominal surgery incisional infection; BONYPID-1000, an antibiotic eluting à tri-calcium phosphate granule for bone related infections applications; and BONYPIDÂ-500, an antibiotic eluting bone graft substitute that fills and reconstructs periodontal and oral/maxillofacial defects, while protecting from infections. PolyPid Ltd. was founded in 2008 and is headquartered in Petach Tikva, Israel.

AtriCure Company Profile

AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; EPi-Sense guided coagulation system used for the coagulation of tissue; and COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy. It also provides multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable users to make longer linear lines of ablation. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. The company sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.

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