Analyzing UFP Technologies (NASDAQ:UFPT) and Paragon 28 (NYSE:FNA)

UFP Technologies (NASDAQ:UFPT) and Paragon 28 (NYSE:FNA) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Profitability

This table compares UFP Technologies and Paragon 28’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UFP Technologies	11.87%	17.53%	12.48%
Paragon 28	-24.64%	-32.39%	-17.07%

Risk and Volatility

UFP Technologies has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Paragon 28 has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares UFP Technologies and Paragon 28″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UFP Technologies	$417.47 million	5.06	$44.92 million	$6.22	44.24
Paragon 28	$216.39 million	1.89	-$57.53 million	($0.69)	-7.09

UFP Technologies has higher revenue and earnings than Paragon 28. Paragon 28 is trading at a lower price-to-earnings ratio than UFP Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

87.3% of UFP Technologies shares are held by institutional investors. Comparatively, 63.6% of Paragon 28 shares are held by institutional investors. 6.2% of UFP Technologies shares are held by insiders. Comparatively, 15.3% of Paragon 28 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for UFP Technologies and Paragon 28, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UFP Technologies	0	1	2	0	2.67
Paragon 28	0	0	4	0	3.00

UFP Technologies presently has a consensus target price of $323.50, indicating a potential upside of 17.55%. Paragon 28 has a consensus target price of $15.25, indicating a potential upside of 211.86%. Given Paragon 28’s stronger consensus rating and higher possible upside, analysts clearly believe Paragon 28 is more favorable than UFP Technologies.

Summary

UFP Technologies beats Paragon 28 on 9 of the 14 factors compared between the two stocks.

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.

About Paragon 28

Paragon 28, Inc. develops, distributes, and sells foot and ankle surgical systems in the United States and internationally. It offers plating systems, including gorilla plating systems, such as lisfranc, lapidus, lateral column, calcaneus slide, and naviculocuneiform (NC) fusion plating systems; baby gorilla plate-specific screws, navicular fracture plates, and 5th metatarsal hook plates; and silverback plating systems. The company also provides precision guide technology for various procedures consisting of fusion, a procedure to address bunion deformities that fuses two bones on the big toe; first tarsometatarsal arthrodesis; and metatarsal osteotomy for bunion correction, medial column beaming for charcot foot reconstruction, ankle fusion plating, and NC joint arthrodesis. In addition, it offers monster, mini monster, and joust beaming screw systems for use in bone reconstruction, osteotomy, arthrodesis, joint fusion, ligament fixation, fracture repair, and fracture fixation; APEX 3D total ankle replacement systems; and total talus spacers to replace the talus and bone in the ankle that connects the leg and foot. Further, the company provides forefoot or hallux valgus correction systems, including phantom intramedullary nail systems for the treatment of severe hallux valgus; and various orthobiologics comprising bone wedges, grafts, demineralized bone matrices, bone void fillers, synthetic materials, amniotic products, and a biocompatible collagen matrix, as well as PRESERVE bone graft systems for homologous application. Additionally, it offers soft tissue fixation systems, titanium sprayed polyetheretherketone implants, nitinol staple systems, stabilization systems, and curved instruments. The company serves hospitals and ambulatory surgery centers through a network of sales representatives and stocking distributors. Paragon 28, Inc. was founded in 2010 and is headquartered in Englewood, Colorado.