Reviewing OPKO Health (NASDAQ:OPK) and DexCom (NASDAQ:DXCM)

DexCom (NASDAQ:DXCM) and OPKO Health (NASDAQ:OPK) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares DexCom and OPKO Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DexCom	19.31%	33.33%	13.19%
OPKO Health	-36.63%	-16.78%	-10.98%

Insider & Institutional Ownership

97.8% of DexCom shares are held by institutional investors. Comparatively, 64.6% of OPKO Health shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Comparatively, 49.7% of OPKO Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares DexCom and OPKO Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	4.79	$836.30 million	$2.34	24.71
OPKO Health	$606.90 million	1.37	-$225.68 million	($0.27)	-4.07

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DexCom and OPKO Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	1	3	18	3	2.92
OPKO Health	1	4	0	1	2.17

DexCom currently has a consensus price target of $83.22, indicating a potential upside of 43.92%. OPKO Health has a consensus price target of $1.55, indicating a potential upside of 40.91%. Given DexCom’s stronger consensus rating and higher probable upside, analysts clearly believe DexCom is more favorable than OPKO Health.

Volatility & Risk

DexCom has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Summary

DexCom beats OPKO Health on 13 of the 15 factors compared between the two stocks.

About DexCom

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 provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.

About OPKO Health

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.