Analyzing DexCom (NASDAQ:DXCM) & DENTSPLY SIRONA (NASDAQ:XRAY)

DENTSPLY SIRONA (NASDAQ:XRAY) and DexCom (NASDAQ:DXCM) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for DENTSPLY SIRONA and DexCom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DENTSPLY SIRONA	3	9	3	0	2.00
DexCom	1	2	21	2	2.92

DENTSPLY SIRONA presently has a consensus target price of $13.54, indicating a potential upside of 29.43%. DexCom has a consensus target price of $88.71, indicating a potential upside of 6.84%. Given DENTSPLY SIRONA’s higher probable upside, analysts clearly believe DENTSPLY SIRONA is more favorable than DexCom.

Valuation & Earnings

This table compares DENTSPLY SIRONA and DexCom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DENTSPLY SIRONA	$3.68 billion	0.57	-$598.00 million	($2.75)	-3.80
DexCom	$4.66 billion	6.72	$836.30 million	$2.53	32.82

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

Institutional and Insider Ownership

95.7% of DENTSPLY SIRONA shares are owned by institutional investors. Comparatively, 97.8% of DexCom shares are owned by institutional investors. 0.5% of DENTSPLY SIRONA shares are owned by insiders. Comparatively, 0.3% of DexCom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DENTSPLY SIRONA	-14.99%	20.84%	5.32%
DexCom	20.12%	35.94%	14.75%

Risk and Volatility

DENTSPLY SIRONA has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Summary

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

About DENTSPLY SIRONA

DENTSPLY SIRONA Inc. manufactures and sells various dental products and technologies worldwide. It operates in four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare. The company offers dental equipment comprising imaging equipment, motorized dental handpieces, treatment centers, other instruments, amalgamators, mixing machines, and porcelain furnaces; and dental CAD/CAM technologies to support dental restorations, such as intraoral scanners, 3-D printers, mills, other software and services, and a full-chairside economical restoration of esthetic ceramic dentistry, as well as DS Core, its cloud-based platform. It also provides endodontic products consisting of motorized endodontic handpieces, files, sealers, irrigation needles, and other tools that support root canal procedures; restorative products, including dental ceramics, crowns, and veneers; and preventative products, such as curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers, as well as dental anesthetics, prophylaxis paste, dental sealants, and impression materials. In addition, the company offers SureSmile and Byte aligner solutions; VPro/HyperByte, a high-frequency vibration technology device; SureSmile Simulator, which creates a 3D visualization of a patient's outcome; and Byte Plus for treatment planning. Further, it provides dental implants, digital dentures, crown and bridge porcelain products, bone regenerative and restorative solutions, treatment planning software, and educational programs; dental prosthetics; urology catheters; and other health-related consumables. The company serves professional dental and consumable medical device markets through third-party distributors. The company was formerly known as DENTSPLY International Inc. and changed its name to DENTSPLY SIRONA Inc. in February 2016. DENTSPLY SIRONA Inc. was founded in 1877 and is headquartered in Charlotte, North Carolina

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.