ABIOMED (NASDAQ: ABMD) and PhotoMedex (NASDAQ:PHMD) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional & Insider Ownership
90.5% of ABIOMED shares are owned by institutional investors. Comparatively, 5.2% of PhotoMedex shares are owned by institutional investors. 7.0% of ABIOMED shares are owned by company insiders. Comparatively, 22.4% of PhotoMedex shares are owned 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.
This is a summary of current ratings and target prices for ABIOMED and PhotoMedex, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ABIOMED currently has a consensus target price of $157.50, suggesting a potential upside of 4.05%. Given ABIOMED’s higher probable upside, analysts clearly believe ABIOMED is more favorable than PhotoMedex.
This table compares ABIOMED and PhotoMedex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
ABIOMED has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, PhotoMedex has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Earnings & Valuation
This table compares ABIOMED and PhotoMedex’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ABIOMED||$474.78 million||13.99||$110.92 million||$1.69||89.57|
|PhotoMedex||$30.70 million||0.16||-$1.42 million||N/A||N/A|
ABIOMED has higher revenue and earnings than PhotoMedex.
ABIOMED beats PhotoMedex on 9 of the 11 factors compared between the two stocks.
ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.
PhotoMedex, Inc. is a global health products and services company providing integrated disease management and solutions to dermatologists, professional aestheticians and consumers. The Company provides products and services that address skin diseases and conditions, including acne and photo damage. The Company operates through three business segments: Consumer segment, Physician Recurring segment and Professional segment. The Company provides skin health solutions to spa markets, as well as traditional retail, online and infomercial outlets for home-use products. The Company’s Consumer segment is engaged in the designing, development, manufacturing and selling of long-term hair reduction and acne consumer products. Its Physician Recurring segment is engaged in the sales of skincare products. Its Professional segment is engaged in the sale of equipment, such as medical and esthetic light and heat based products. Its LHE brands includes Mistral, Kona, FSD, SpaTouch Elite and accessories.
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