Head to Head Survey: ReShape Lifesciences (NASDAQ:RSLS) and Quipt Home Medical (NASDAQ:QIPT)

Quipt Home Medical (NASDAQ:QIPT) and ReShape Lifesciences (NASDAQ:RSLS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

This table compares Quipt Home Medical and ReShape Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quipt Home Medical	-1.95%	-4.51%	-2.01%
ReShape Lifesciences	-112.11%	-208.37%	-108.96%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Quipt Home Medical and ReShape Lifesciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quipt Home Medical	1	0	3	2	3.00
ReShape Lifesciences	0	1	0	0	2.00

Quipt Home Medical presently has a consensus price target of $6.25, suggesting a potential upside of 126.45%. Given Quipt Home Medical’s stronger consensus rating and higher probable upside, research analysts clearly believe Quipt Home Medical is more favorable than ReShape Lifesciences.

Volatility and Risk

Quipt Home Medical has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, ReShape Lifesciences has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Quipt Home Medical and ReShape Lifesciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quipt Home Medical	$221.74 million	0.54	-$2.78 million	($0.11)	-25.09
ReShape Lifesciences	$8.68 million	0.33	-$11.39 million	N/A	N/A

Quipt Home Medical has higher revenue and earnings than ReShape Lifesciences.

Insider & Institutional Ownership

42.9% of Quipt Home Medical shares are held by institutional investors. Comparatively, 22.1% of ReShape Lifesciences shares are held by institutional investors. 4.2% of Quipt Home Medical shares are held by insiders. Comparatively, 0.1% of ReShape Lifesciences shares are held 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.

Summary

Quipt Home Medical beats ReShape Lifesciences on 12 of the 13 factors compared between the two stocks.

About Quipt Home Medical

Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.

About ReShape Lifesciences

ReShape Lifesciences Inc. provides products and services that manages and treat obesity and metabolic diseases in the United States, Australia, Europe, and internationally. The company's product portfolio includes Lap-Band System, a minimally invasive long-term treatment of severe obesity and more invasive surgical stapling procedures, such as the gastric bypass or sleeve gastrectomy; Lap-Band 2.0 System, an adjustable postoperatively to increase or decrease the pressure to the band in order to optimize an individual's comfort and therapy effectiveness; and ReShape Calibration Tubes, that fits the lesser curvature of the stomach to reach the pylorus. It is also involved in developing ReShape Obalon Balloon System, consists of a swallowable capsule that tracks and displays the location of the balloon during placement; and ReShape Diabetes Bloc-Stim Neuromodulation (DBSN) device, a technology that is in development for the treatment of type 2 diabetes mellitus. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in 2017. ReShape Lifesciences Inc. was incorporated in 2002 and is headquartered in Irvine, California.