Contrasting DexCom (NASDAQ:DXCM) and UFP Technologies (NASDAQ:UFPT)


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DexCom (NASDAQ:DXCM) and UFP Technologies (NASDAQ:UFPT) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Insider and Institutional Ownership

94.1% of DexCom shares are held by institutional investors. Comparatively, 76.1% of UFP Technologies shares are held by institutional investors. 0.7% of DexCom shares are held by insiders. Comparatively, 11.0% of UFP Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

DexCom has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for DexCom and UFP Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DexCom 1 2 13 0 2.75
UFP Technologies 0 0 2 0 3.00

DexCom presently has a consensus target price of $443.07, suggesting a potential upside of 17.76%. Given DexCom’s higher probable upside, research analysts plainly believe DexCom is more favorable than UFP Technologies.

Valuation & Earnings

This table compares DexCom and UFP Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DexCom $1.48 billion 24.52 $101.10 million $1.84 204.47
UFP Technologies $198.38 million 1.87 $19.75 million $2.63 18.73

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

Profitability

This table compares DexCom and UFP Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DexCom 12.69% 27.29% 10.45%
UFP Technologies 8.12% 8.94% 7.67%

Summary

DexCom beats UFP Technologies on 10 of the 14 factors compared between the two stocks.

DexCom Company Profile

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 use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, an integrated CGM system for diabetes management; Dexcom G7, a next generation G7 CGM system; and Dexcom Share, a remote monitoring system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop 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.

UFP Technologies Company Profile

UFP Technologies, Inc. designs and converts foams, films, and plastics materials for the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets in the United States. It offers single patient use surfaces, advanced wound care, infection prevention, and disposables for surgical procedures, endoscopic procedures, orthopedic implants, orthopedic appliances, biopharma drug manufacturing, etc.; molded components for automotive, aerospace, and defense markets; recycled protective packaging for B2C brands; and reusable cases and custom inserts. The company markets and sells its products through direct sales forces and independent manufacturer representatives. UFP Technologies, Inc. was founded in 1963 and is headquartered in Newburyport, Massachusetts.

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