Analyzing DexCom (NASDAQ:DXCM) & Endologix (NASDAQ:ELGX)

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

Risk & Volatility

DexCom has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Endologix has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

97.1% of DexCom shares are owned by institutional investors. Comparatively, 51.8% of Endologix shares are owned by institutional investors. 0.7% of DexCom shares are owned by insiders. Comparatively, 1.3% of Endologix 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 DexCom and Endologix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DexCom 9.24% 26.44% 9.50%
Endologix -44.65% -63.96% -13.26%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DexCom 0 5 16 0 2.76
Endologix 0 3 0 0 2.00

DexCom presently has a consensus price target of $347.65, suggesting a potential downside of 14.25%. Endologix has a consensus price target of $4.00, suggesting a potential upside of 409.88%. Given Endologix’s higher possible upside, analysts plainly believe Endologix is more favorable than DexCom.

Earnings & Valuation

This table compares DexCom and Endologix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DexCom $1.48 billion 25.36 $101.10 million $1.84 220.33
Endologix $143.37 million 0.10 -$64.76 million ($2.19) -0.36

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

Summary

DexCom beats Endologix on 12 of the 14 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 offers its systems for ambulatory use by people with diabetes; and for use by healthcare providers. Its products include DexCom G6, a CGM system for diabetes management; DexCom G5 mobile CGM system to communicate directly to patient's mobile device; DexCom G4 PLATINUM system for continuous use by adults with diabetes; and DexCom Share, a remote monitoring system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop a series of next-generation CGM products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was founded in 1999 and is headquartered in San Diego, California.

About Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California.

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