Head-To-Head Contrast: Medtronic (NYSE:MDT) vs. CompuMed (OTCMKTS:CMPD)

CompuMed (OTCMKTS:CMPD) and Medtronic (NYSE:MDT) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares CompuMed and Medtronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompuMed	-2.51%	-6.47%	-4.18%
Medtronic	13.20%	14.61%	7.80%

Analyst Recommendations

This is a summary of recent ratings for CompuMed and Medtronic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompuMed	0	0	0	0	0.00
Medtronic	0	11	17	0	2.61

Medtronic has a consensus price target of $99.00, indicating a potential upside of 20.84%. Given Medtronic’s stronger consensus rating and higher possible upside, analysts plainly believe Medtronic is more favorable than CompuMed.

Volatility and Risk

CompuMed has a beta of -0.5, meaning that its stock price is 150% less volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Institutional & Insider Ownership

82.1% of Medtronic shares are held by institutional investors. 22.0% of CompuMed shares are held by insiders. Comparatively, 0.3% of Medtronic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares CompuMed and Medtronic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompuMed	$7.55 million	1.12	-$60,000.00	($0.15)	-42.27
Medtronic	$36.36 billion	2.89	$4.80 billion	$3.73	21.96

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

Summary

Medtronic beats CompuMed on 13 of the 14 factors compared between the two stocks.

About CompuMed

CompuMed, Inc., an enterprise telemedicine solutions company, provides clinical care services for patients and medical facilities. It offers telecardiology and teleradiology services that provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities worldwide. The company also provides enterprise telemedicine solutions; a suite of telecardiology services and diagnostic exam interpretations for pediatric and adult patients, including electrocardiogram (ECG) devices, echocardiogram, ECG, vascular, holter, nuclear, and video consults; and reading, transcription, reporting, storage, and video consultations in the areas of Vscan, X-ray, ultrasound, mammography, computed tomography, magnetic resonance imaging, and radiologist video consults. It also offers OsteoGram software that works in combination with standard or digital X-ray equipment to support osteoporosis screening, diagnosis, and therapy monitoring. In addition, the company provides mobile ECG and ultrasound solutions that provide patients with immediate access to its board-certified specialists; and medical devices. It serves organ procurement organizations, rural healthcare, and correctional healthcare industries. CompuMed, Inc. was founded in 1973 and is headquartered in Los Angeles, California.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.