Financial Analysis: AIT Therapeutics (AITB) versus SeaSpine (SPNE)

AIT Therapeutics (OTCMKTS:AITB) and SeaSpine (NASDAQ:SPNE) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

53.4% of SeaSpine shares are owned by institutional investors. 13.5% of SeaSpine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AIT Therapeutics and SeaSpine, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AIT Therapeutics 0 0 1 0 3.00
SeaSpine 0 0 5 0 3.00

AIT Therapeutics currently has a consensus target price of $16.00, suggesting a potential upside of 247.83%. SeaSpine has a consensus target price of $19.40, suggesting a potential upside of 8.62%. Given AIT Therapeutics’ higher possible upside, equities research analysts plainly believe AIT Therapeutics is more favorable than SeaSpine.

Profitability

This table compares AIT Therapeutics and SeaSpine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AIT Therapeutics N/A N/A -243.64%
SeaSpine -21.75% -27.65% -21.65%

Earnings and Valuation

This table compares AIT Therapeutics and SeaSpine’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AIT Therapeutics N/A N/A -$18.04 million ($3.01) -1.53
SeaSpine $131.81 million 2.00 -$32.11 million ($2.58) -6.92

AIT Therapeutics has higher earnings, but lower revenue than SeaSpine. SeaSpine is trading at a lower price-to-earnings ratio than AIT Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

AIT Therapeutics has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, SeaSpine has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

About AIT Therapeutics

AIT Therapeutics, Inc., a clinical-stage medical device and biopharmaceutical company, develops nitric oxide (NO) delivery systems to treat respiratory and other diseases. Its NO delivery systems are used for the treatment of pulmonary hypertension of the newborn, bronchiolitis, and nontuberculous mycobacteria. The company was founded in 2011 and is based in Harrison, New York.

About SeaSpine

SeaSpine Holdings Corporation, a medical technology company, focuses on the design, development, and commercialization of surgical solutions for the treatment of spinal disorders in the United States and internationally. The company provides orthobiologics and spinal implant solutions for the neurosurgeons and orthopedic spine surgeons to perform fusion procedures in the lumbar, thoracic, and cervical regions of the spine. Its orthobiologics products include demineralized bone matrices, collagen ceramic matrices, demineralized cancellous allograft bone products, and synthetic bone void fillers to enhance bone fusion rates in a range of orthopedic surgeries, including spine, hip, and extremities procedures. The company offers orthobiologics products in various forms, such as putties, pastes, strips, and resorbable mesh. Its spinal implant portfolio comprises products for spinal decompression, alignment, and stabilization that are used to facilitate fusion in minimally invasive, complex, deformity, and degenerative procedures. The company was incorporated in 2015 and is headquartered in Carlsbad, California.

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