Critical Review: Integra LifeSciences (NASDAQ:IART) vs. Modular Medical (NASDAQ:MODD)

Integra LifeSciences (NASDAQ:IART) and Modular Medical (NASDAQ:MODD) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares Integra LifeSciences and Modular Medical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integra LifeSciences	$1.57 billion	0.88	$67.74 million	$0.50	34.98
Modular Medical	N/A	N/A	-$17.47 million	($0.78)	-2.73

Integra LifeSciences has higher revenue and earnings than Modular Medical. Modular Medical is trading at a lower price-to-earnings ratio than Integra LifeSciences, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

84.8% of Integra LifeSciences shares are held by institutional investors. Comparatively, 27.5% of Modular Medical shares are held by institutional investors. 3.1% of Integra LifeSciences shares are held by insiders. Comparatively, 32.3% of Modular Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Integra LifeSciences and Modular Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integra LifeSciences	3	4	2	0	1.89
Modular Medical	0	0	1	0	3.00

Integra LifeSciences currently has a consensus price target of $27.13, suggesting a potential upside of 55.09%. Modular Medical has a consensus price target of $5.00, suggesting a potential upside of 134.74%. Given Modular Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Modular Medical is more favorable than Integra LifeSciences.

Risk & Volatility

Integra LifeSciences has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Integra LifeSciences and Modular Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integra LifeSciences	1.51%	14.07%	5.66%
Modular Medical	N/A	-228.12%	-178.09%

Summary

Integra LifeSciences beats Modular Medical on 10 of the 13 factors compared between the two stocks.

About Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.

About Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, California.