Masimo (NASDAQ:MASI) versus DexCom (NASDAQ:DXCM) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DexCom	17.94%	32.12%	11.86%
Masimo	-33.20%	33.04%	13.92%

Insider and Institutional Ownership

97.8% of DexCom shares are owned by institutional investors. Comparatively, 86.0% of Masimo shares are owned by institutional investors. 0.3% of DexCom shares are owned by company insiders. Comparatively, 9.7% of Masimo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

DexCom has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Masimo has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares DexCom and Masimo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	6.14	$836.30 million	$2.10	35.42
Masimo	$2.09 billion	4.49	-$304.90 million	($10.54)	-16.62

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

Analyst Ratings

This is a summary of current ratings and target prices for DexCom and Masimo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	2	4	17	2	2.76
Masimo	1	7	1	0	2.00

DexCom currently has a consensus price target of $85.18, indicating a potential upside of 14.52%. Masimo has a consensus price target of $181.17, indicating a potential upside of 3.39%. Given DexCom’s stronger consensus rating and higher possible upside, research analysts plainly believe DexCom is more favorable than Masimo.

Summary

DexCom beats Masimo on 12 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 Masimo

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.