Analyzing Valeritas (OTCMKTS:VLRXQ) & UFP Technologies (NASDAQ:UFPT)

Valeritas (OTCMKTS:VLRXQ) and UFP Technologies (NASDAQ:UFPT) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Valeritas and UFP Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valeritas	N/A	N/A	N/A	N/A	N/A
UFP Technologies	$461.85 million	5.17	$44.92 million	$7.01	44.36

UFP Technologies has higher revenue and earnings than Valeritas.

Profitability

This table compares Valeritas and UFP Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valeritas	N/A	N/A	N/A
UFP Technologies	11.74%	18.92%	12.33%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Valeritas and UFP Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valeritas	0	0	0	0	0.00
UFP Technologies	0	1	2	0	2.67

UFP Technologies has a consensus target price of $323.50, indicating a potential upside of 4.04%. Given UFP Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe UFP Technologies is more favorable than Valeritas.

Insider and Institutional Ownership

87.3% of UFP Technologies shares are held by institutional investors. 1.0% of Valeritas shares are held by insiders. Comparatively, 6.2% of UFP Technologies shares are held by 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.

Summary

UFP Technologies beats Valeritas on 9 of the 9 factors compared between the two stocks.

About Valeritas

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States. The company offers V-Go, a wearable insulin delivery device for basal-bolus therapy. It also develops V-Go Prefill that is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go SIM for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.