Dynatronics Corporation (NASDAQ: DYNT) and EnteroMedics (NASDAQ:RSLS) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.


This table compares Dynatronics Corporation and EnteroMedics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynatronics Corporation -5.47% -88.57% -9.59%
EnteroMedics -4,399.48% -167.73% -123.00%

Analyst Recommendations

This is a summary of current recommendations for Dynatronics Corporation and EnteroMedics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynatronics Corporation 0 0 0 0 N/A
EnteroMedics 0 0 1 0 3.00

EnteroMedics has a consensus price target of $11.03, indicating a potential upside of 451.50%. Given EnteroMedics’ higher probable upside, analysts clearly believe EnteroMedics is more favorable than Dynatronics Corporation.

Risk and Volatility

Dynatronics Corporation has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, EnteroMedics has a beta of 3.07, indicating that its share price is 207% more volatile than the S&P 500.

Insider & Institutional Ownership

17.5% of Dynatronics Corporation shares are owned by institutional investors. Comparatively, 0.9% of EnteroMedics shares are owned by institutional investors. 51.8% of Dynatronics Corporation shares are owned by company insiders. Comparatively, 32.5% of EnteroMedics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Dynatronics Corporation and EnteroMedics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dynatronics Corporation $35.76 million 0.32 -$836,282.00 ($1.24) -1.98
EnteroMedics N/A N/A N/A ($16.72) -0.12

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


Dynatronics Corporation beats EnteroMedics on 7 of the 10 factors compared between the two stocks.

About Dynatronics Corporation

Dynatronics Corporation is a manufacturer and distributor of physical medicine products. The Company’s products include a line of medical equipment for physical medicine applications, including therapy devices, medical supplies and soft goods, treatment tables and rehabilitation equipment. Its products are used by physical therapists, chiropractors, sports medicine practitioners, podiatrists, physicians and other physical medicine professionals. Its physical medicine products include therapeutic modalities, such as Dynatron Solaris, including electrotherapy and thermal therapy, and 25 Series, including electrotherapy and ultrasound; manufactured capital products, including traction systems and wood furniture; manufactured supplies, including cold packs, straps, wedges, bolsters and mats; distributed capital products, including hydrotherapy, weight training equipment and pilates, and distributed supplies, including clinical accessories, sports med and taping products, lotions and gels.

About EnteroMedics

ReShape Lifesciences Inc., formerly EnteroMedics Inc., is a medical device company. The Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. The Company’s neuroblocking technology, which is referred to as VBLOC therapy, is designed to intermittently block the vagus nerve. The Company’s initial product is the Maestro Rechargeable System, which uses VBLOC therapy to limit the expansion of the stomach, help control hunger sensations between meals, reduce the frequency and intensity of stomach contractions and produce a feeling of early and prolonged fullness. The Company’s VBLOC therapy is designed to block the gastrointestinal effects of the vagus nerve by replicating a vagotomy using high-frequency, low-energy electrical impulses to intermittently interrupt naturally occurring neural impulses on the vagus nerve between the brain and the digestive system.

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