Analyzing Echo Therapeutics (OTCMKTS:ECTE) and RxSight (NASDAQ:RXST)

Echo Therapeutics (OTCMKTS:ECTE) and RxSight (NASDAQ:RXST) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Earnings & Valuation

This table compares Echo Therapeutics and RxSight”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Echo Therapeutics	N/A	N/A	N/A	N/A	N/A
RxSight	$139.93 million	2.20	-$27.45 million	($0.80)	-9.39

Echo Therapeutics has higher earnings, but lower revenue than RxSight.

Profitability

This table compares Echo Therapeutics and RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Echo Therapeutics	N/A	N/A	N/A
RxSight	-21.93%	-11.56%	-10.31%

Insider & Institutional Ownership

78.8% of RxSight shares are held by institutional investors. 7.0% of Echo Therapeutics shares are held by insiders. Comparatively, 9.6% of RxSight shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Echo Therapeutics and RxSight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Echo Therapeutics	0	0	0	0	0.00
RxSight	3	9	1	0	1.85

RxSight has a consensus target price of $10.00, indicating a potential upside of 33.16%. Given RxSight’s stronger consensus rating and higher possible upside, analysts clearly believe RxSight is more favorable than Echo Therapeutics.

Summary

RxSight beats Echo Therapeutics on 6 of the 9 factors compared between the two stocks.

About Echo Therapeutics

Echo Therapeutics, Inc. is a medical device company, which engages in the development of non-invasive, and wireless continuous glucose monitoring system for use in the diabetes outpatient market. It offers needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose and delivery of topical pharmaceuticals. The company was founded in 1989 and is headquartered in Iselin, NJ.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.