Reviewing AxoGen (NASDAQ:AXGN) and DexCom (NASDAQ:DXCM)

AxoGen (NASDAQ:AXGN) and DexCom (NASDAQ:DXCM) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AxoGen	-6.97%	-13.44%	-7.48%
DexCom	17.94%	32.12%	11.86%

Risk and Volatility

AxoGen has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	1	0	9	0	2.80
DexCom	1	3	18	2	2.88

AxoGen currently has a consensus target price of $39.75, suggesting a potential upside of 6.37%. DexCom has a consensus target price of $86.50, suggesting a potential upside of 41.27%. Given DexCom’s stronger consensus rating and higher possible upside, analysts plainly believe DexCom is more favorable than AxoGen.

Earnings & Valuation

This table compares AxoGen and DexCom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$225.21 million	8.61	-$15.70 million	($0.34)	-109.91
DexCom	$4.66 billion	5.05	$836.30 million	$2.10	29.16

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

Insider and Institutional Ownership

80.3% of AxoGen shares are held by institutional investors. Comparatively, 97.8% of DexCom shares are held by institutional investors. 2.8% of AxoGen shares are held by company insiders. Comparatively, 0.3% of DexCom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.

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.