Head to Head Analysis: Intuitive Surgical (NASDAQ:ISRG) & Orthofix Medical (NASDAQ:OFIX)

Orthofix Medical (NASDAQ:OFIX) and Intuitive Surgical (NASDAQ:ISRG) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Orthofix Medical and Intuitive Surgical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orthofix Medical	$822.31 million	0.54	-$92.19 million	($1.51)	-7.30
Intuitive Surgical	$10.06 billion	11.79	$2.86 billion	$8.73	38.48

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

Insider & Institutional Ownership

89.8% of Orthofix Medical shares are held by institutional investors. Comparatively, 83.6% of Intuitive Surgical shares are held by institutional investors. 2.7% of Orthofix Medical shares are held by company insiders. Comparatively, 0.6% of Intuitive Surgical 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.

Analyst Ratings

This is a breakdown of current ratings for Orthofix Medical and Intuitive Surgical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orthofix Medical	1	1	3	0	2.40
Intuitive Surgical	1	6	21	0	2.71

Orthofix Medical currently has a consensus price target of $16.00, suggesting a potential upside of 45.19%. Intuitive Surgical has a consensus price target of $523.46, suggesting a potential upside of 55.84%. Given Intuitive Surgical’s stronger consensus rating and higher probable upside, analysts plainly believe Intuitive Surgical is more favorable than Orthofix Medical.

Volatility & Risk

Orthofix Medical has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Orthofix Medical and Intuitive Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orthofix Medical	-7.27%	-13.44%	-7.05%
Intuitive Surgical	28.45%	16.91%	14.83%

Summary

Intuitive Surgical beats Orthofix Medical on 12 of the 14 factors compared between the two stocks.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

About Intuitive Surgical

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.