Boston Scientific (NYSE:BSX) and Irhythm Technologies (NASDAQ:IRTC) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Analyst Ratings
Get Boston Scientific alerts:This is a summary of current ratings and recommmendations for Boston Scientific and Irhythm Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boston Scientific | 0 | 2 | 21 | 2 | 3.00 |
| Irhythm Technologies | 0 | 4 | 5 | 0 | 2.56 |
Boston Scientific presently has a consensus target price of $40.80, suggesting a potential upside of 2.56%. Irhythm Technologies has a consensus target price of $101.14, suggesting a potential upside of 10.43%. Given Irhythm Technologies’ higher possible upside, analysts clearly believe Irhythm Technologies is more favorable than Boston Scientific.
Valuation and Earnings
This table compares Boston Scientific and Irhythm Technologies’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boston Scientific | $9.82 billion | 5.61 | $1.67 billion | $1.47 | 27.06 |
| Irhythm Technologies | $147.29 million | 15.04 | -$48.28 million | ($1.89) | -48.46 |
Boston Scientific has higher revenue and earnings than Irhythm Technologies. Irhythm Technologies is trading at a lower price-to-earnings ratio than Boston Scientific, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Boston Scientific has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Irhythm Technologies has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.
Profitability
This table compares Boston Scientific and Irhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boston Scientific | 17.01% | 25.92% | 10.27% |
| Irhythm Technologies | -32.78% | -66.24% | -37.49% |
Institutional and Insider Ownership
91.3% of Boston Scientific shares are held by institutional investors. Comparatively, 99.0% of Irhythm Technologies shares are held by institutional investors. 0.7% of Boston Scientific shares are held by company insiders. Comparatively, 5.1% of Irhythm Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Boston Scientific beats Irhythm Technologies on 10 of the 15 factors compared between the two stocks.
Boston Scientific Company Profile
Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: Cardiovascular, Rhythm Management, and MedSurg. The company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions therapy products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels; and structural heart therapy systems. It also provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy systems, wires, and stents to treat venous diseases; and peripheral embolization devices, microcatheters, and drainage catheters to treat various cancers. In addition, the company offers cardiac rhythm management devices, such as implantable cardioverter defibrillator systems to treat abnormalities; remote patient management system; implantable cardiac resynchronization therapy pacemaker systems; and medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, mapping system, and other accessories. Further, it provides products to diagnose and treat diseases of the gastrointestinal and pulmonary conditions; devices to diagnose, treat, and palliate pulmonary diseases within the airway and lungs; and products to treat various urological and pelvic conditions; deep brain stimulation systems for the treatment of parkinson's disease, tremor, and intractable primary and secondary dystonia; and spinal cord stimulator systems for the management of chronic pain. The company was founded in 1979 and is headquartered in Marlborough, Massachusetts.
Irhythm Technologies Company Profile
iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. Its Zio XT monitor, a single-use, wire-free, and wearable patch-based biosensor, records patient's heartbeats and ECG data. The company was founded in 2006 and is headquartered in San Francisco, California.
No comments:
Post a Comment