Reviewing InMode (NASDAQ:INMD) and Escalon Medical (NASDAQ:ESMC)

InMode (NASDAQ:INMD) and Escalon Medical (OTCMKTS:ESMC) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

11.3% of InMode shares are owned by institutional investors. 1.9% of Escalon Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for InMode and Escalon Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InMode 0 0 4 0 3.00
Escalon Medical 0 0 0 0 N/A

InMode presently has a consensus target price of $39.50, suggesting a potential downside of 10.15%. Given InMode’s higher probable upside, equities analysts plainly believe InMode is more favorable than Escalon Medical.

Profitability

This table compares InMode and Escalon Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InMode 30.33% 50.50% 36.58%
Escalon Medical 4.19% 24.25% 7.50%

Earnings & Valuation

This table compares InMode and Escalon Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InMode $100.16 million 14.03 $22.37 million N/A N/A
Escalon Medical $9.63 million 0.16 -$250,000.00 N/A N/A

InMode has higher revenue and earnings than Escalon Medical.

Summary

InMode beats Escalon Medical on 9 of the 10 factors compared between the two stocks.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally-invasive aesthetic medical products based on its proprietary radio frequency assisted lipolysis and deep subdermal fractional radio frequency technologies. The company offers minimally-invasive aesthetic medical products for procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions. InMode Ltd. offers its products directly in the United States, Canada, the United Kingdom, Spain, and India, as well as indirectly through third-party distributors internationally. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was founded in 2008 and is headquartered in Yokneam, Israel.

About Escalon Medical

Escalon Medical Corp. develops, manufactures, markets, and distributes medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which provides information about the internal structure of the eye; B-Scan, a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque; UBM, a high frequency/high resolution ultrasound device, which provides detailed information about the anterior segment of the eye; and pachymeter that measures the thickness of cornea. The company also provides color/fluorescein angiography digital imaging systems that are primarily used in detecting retinal problems in diabetic and elderly patients; distributes intraocular gas products, such as C3F8 and SF6, which are used by vitreoretinal surgeons as a temporary tamponade in detached retina surgery; and manufactures and distributes a patented disposable universal gas kit that delivers the gas from the canister to the patient. In addition, it offers disposable surgical packs that are used in vitreoretinal surgery; viscous fluid transfer systems and related disposable syringe products, which aid surgeons in the process of injecting and extracting silicone oil; and AXIS Image management system for managing images through the Web browser from various devices regardless of modality, manufacturer, or location. The company sells its products to medical institutions through independent sales representatives, a network of distributors, and internal sales employees. Escalon Medical Corp. was founded in 1987 and is based in Wayne, Pennsylvania.

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