DexCom (NASDAQ:DXCM – Get Free Report) and Zynex (NASDAQ:ZYXI – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for DexCom and Zynex, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DexCom | 0 | 2 | 19 | 3 | 3.04 |
| Zynex | 1 | 0 | 0 | 0 | 1.00 |
DexCom presently has a consensus target price of $92.43, suggesting a potential upside of 18.05%. Given DexCom’s stronger consensus rating and higher possible upside, research analysts clearly believe DexCom is more favorable than Zynex.
Earnings and Valuation
This table compares DexCom and Zynex”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DexCom | $4.97 billion | 5.95 | $836.30 million | $2.53 | 30.95 |
| Zynex | $108.20 million | 0.04 | $2.99 million | ($2.43) | -0.05 |
DexCom has higher revenue and earnings than Zynex. Zynex is trading at a lower price-to-earnings ratio than DexCom, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DexCom has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Profitability
This table compares DexCom and Zynex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DexCom | 20.12% | 35.94% | 14.75% |
| Zynex | -68.35% | -804.30% | -36.67% |
Insider and Institutional Ownership
97.8% of DexCom shares are held by institutional investors. Comparatively, 29.7% of Zynex shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Comparatively, 49.3% of Zynex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
DexCom beats Zynex on 14 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 Zynex
Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.
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