ABIOMED (NASDAQ: ABMD) and Dexcom (NASDAQ:DXCM) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
This is a summary of recent ratings and recommmendations for ABIOMED and Dexcom, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ABIOMED currently has a consensus target price of $363.14, suggesting a potential downside of 11.57%. Dexcom has a consensus target price of $74.50, suggesting a potential downside of 19.32%. Given ABIOMED’s stronger consensus rating and higher possible upside, analysts plainly believe ABIOMED is more favorable than Dexcom.
This table compares ABIOMED and Dexcom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
ABIOMED has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Dexcom has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500.
Institutional & Insider Ownership
87.0% of ABIOMED shares are held by institutional investors. 7.0% of ABIOMED shares are held by company insiders. Comparatively, 1.8% of Dexcom shares are held by company 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.
Earnings and Valuation
This table compares ABIOMED and Dexcom’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ABIOMED||$593.75 million||30.87||$112.17 million||$2.45||167.61|
|Dexcom||$718.50 million||11.32||-$50.20 million||($0.58)||-159.21|
ABIOMED has higher earnings, but lower revenue than Dexcom. Dexcom is trading at a lower price-to-earnings ratio than ABIOMED, indicating that it is currently the more affordable of the two stocks.
ABIOMED beats Dexcom on 12 of the 14 factors compared between the two stocks.
ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company offers its systems for ambulatory use by people with diabetes; and for use by healthcare providers. Its products include DexCom G5 mobile continuous glucose monitoring system to communicate directly to patient's mobile device; DexCom G4 PLATINUM system for continuous use by adults with diabetes; and DexCom Share, a remote monitoring system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC to develop a series of next-generation CGM products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was founded in 1999 and is headquartered in San Diego, California.
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