NxStage Medical (NASDAQ: NXTM) and EndoChoice Holdings (NYSE:GI) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitabiliy, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for NxStage Medical and EndoChoice Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NxStage Medical presently has a consensus target price of $31.75, suggesting a potential upside of 35.74%. EndoChoice Holdings has a consensus target price of $7.00, suggesting a potential downside of 12.50%. Given NxStage Medical’s stronger consensus rating and higher possible upside, equities analysts plainly believe NxStage Medical is more favorable than EndoChoice Holdings.
Insider & Institutional Ownership
94.7% of NxStage Medical shares are owned by institutional investors. Comparatively, 37.3% of EndoChoice Holdings shares are owned by institutional investors. 4.7% of NxStage Medical shares are owned by insiders. Comparatively, 31.5% of EndoChoice Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares NxStage Medical and EndoChoice Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares NxStage Medical and EndoChoice Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NxStage Medical||$374.00 million||4.11||$14.68 million||($0.07)||-334.10|
NxStage Medical has higher revenue and earnings than EndoChoice Holdings. NxStage Medical is trading at a lower price-to-earnings ratio than EndoChoice Holdings, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NxStage Medical has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, EndoChoice Holdings has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
NxStage Medical beats EndoChoice Holdings on 9 of the 11 factors compared between the two stocks.
About NxStage Medical
NxStage Medical, Inc. is a medical technology company. The Company develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure. It operates through three segments. The System One segment includes revenues from the sale and rental of the System One and PureFlow SL dialysate preparation equipment and the sale of disposable products in the home and critical care markets. The In-Center segment includes revenues from the sale of blood tubing sets and needles for hemodialysis, primarily for the treatment of end-stage renal disease patients at dialysis clinics, and needles for apheresis. It markets extracorporeal disposable products under the Medisystems brand. The Services segment includes revenues from dialysis services provided to patients at its NxStage Kidney Care dialysis centers. Its product offerings include Home Dialysis, Next-Generation Hemodialysis System, Critical Care, Next-Generation Critical Care System and In-Center.
About EndoChoice Holdings
EndoChoice Holdings, Inc. is a medical device company. The Company is focused on designing and commercializing a platform of products and services for gastrointestinal (GI) caregivers. The Company offers a range of products and services that span single-use devices and infection control products, pathology and imaging systems. The Company’s products are used in colonoscopy and procedures of the upper GI tract, including esophagogastroduodenoscopy (EGD). The Company’s imaging products include Fuse system, EndoCart, and Endoscope repair and maintenance. The Company’s single-use therapeutic devices include Neptune injection needle, Boa polypectomy snare, Rescue retrieval devices, Blox bite block, TrapEase polyp traps, Hydra irrigation system, EndoGlide+, Compliance EndoKit, SafeStart, EndoKit, CinchPad and GI pathology. The Company serves over 2,500 GI departments that perform endoscopic procedures.
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