Contrasting PolyPid (NASDAQ:PYPD) & Silk Road Medical (NASDAQ:SILK)

Silk Road Medical (NASDAQ:SILK) and PolyPid (NASDAQ:PYPD) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Silk Road Medical and PolyPid, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silk Road Medical	2	7	1	0	1.90
PolyPid	0	0	1	0	3.00

Silk Road Medical presently has a consensus target price of $21.50, suggesting a potential downside of 20.43%. PolyPid has a consensus target price of $14.00, suggesting a potential upside of 300.00%. Given PolyPid’s stronger consensus rating and higher possible upside, analysts clearly believe PolyPid is more favorable than Silk Road Medical.

Institutional and Insider Ownership

26.5% of PolyPid shares are held by institutional investors. 3.9% of Silk Road Medical shares are held by company insiders. Comparatively, 24.7% of PolyPid shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Silk Road Medical and PolyPid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silk Road Medical	-29.02%	-35.47%	-20.67%
PolyPid	N/A	-572.69%	-110.25%

Earnings & Valuation

This table compares Silk Road Medical and PolyPid’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silk Road Medical	$177.13 million	6.02	-$55.74 million	($1.37)	-19.72
PolyPid	N/A	N/A	-$23.86 million	($12.64)	-0.28

PolyPid has lower revenue, but higher earnings than Silk Road Medical. Silk Road Medical is trading at a lower price-to-earnings ratio than PolyPid, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Silk Road Medical has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, PolyPid has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

PolyPid beats Silk Road Medical on 7 of the 12 factors compared between the two stocks.

About Silk Road Medical

Silk Road Medical, Inc operates as a medical device company in the United States. The company offers various products for the treatment of carotid artery disease called transcarotid artery revascularization (TCAR). Its products comprise ENROUTE Transcarotid Neuroprotection System that is used to directly access the common carotid artery and establish temporary blood flow reversal; ENROUTE Transcarotid Stent System for transcarotid access; ENHANCE Transcarotid Peripheral Access Kit, which is used to gain initial access to the common carotid artery; ENROUTE 0.014 Guidewire for atraumatic vessel navigation and target lesion crossing for delivery of interventional devices; and ENROUTE Enflate Transcarotid RX Balloon Dilation Catheter, a transcarotid rapid exchange balloon for the TCAR procedure. The company was incorporated in 2007 and is headquartered in Sunnyvale, California.

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.