Masimo (NASDAQ:MASI) vs. Reshape Lifesciences (NASDAQ:RSLS) Critical Comparison

Reshape Lifesciences (OTCMKTS:RSLS) and Masimo (NASDAQ:MASI) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Reshape Lifesciences and Masimo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reshape Lifesciences 0 0 0 0 N/A
Masimo 0 2 5 0 2.71

Masimo has a consensus target price of $208.33, suggesting a potential downside of 8.62%. Given Masimo’s higher possible upside, analysts plainly believe Masimo is more favorable than Reshape Lifesciences.

Profitability

This table compares Reshape Lifesciences and Masimo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reshape Lifesciences -500.15% -412.13% -108.35%
Masimo 21.66% 17.05% 14.39%

Volatility & Risk

Reshape Lifesciences has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Masimo has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

84.5% of Masimo shares are owned by institutional investors. 11.5% of Masimo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Reshape Lifesciences and Masimo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reshape Lifesciences $15.09 million 1.38 -$74.21 million N/A N/A
Masimo $937.84 million 13.16 $196.22 million $3.22 70.80

Masimo has higher revenue and earnings than Reshape Lifesciences.

Summary

Masimo beats Reshape Lifesciences on 10 of the 11 factors compared between the two stocks.

About Reshape Lifesciences

ReShape Lifesciences Inc., a medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases, and other gastrointestinal disorders. Its proprietary neuroblocking technology, vBloc Therapy is designed to intermittently block the vagus nerve using electrical impulses. The company's product portfolio includes ReShape vBloc, a therapy that enables patients to feel full and eat less by intermittently blocking hunger signals on the vagus nerve; and ReShape Balloon system that uses balloon technology designed to take up room in the stomach to enable people lose weight. Its product portfolio also comprises ReShape Vest system, an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach to enable weight loss in obese and morbidly obese patients without permanently changing patient anatomy. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in October 2017. ReShape Lifesciences Inc. was founded in 2002 and is headquartered in San Clemente, California.

About Masimo

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies worldwide. The company offers Masimo Signal Extraction Technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. In addition, the company offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, and handheld capnograph and capnometer devices; and O3 regional oximetry for tissue oxygen saturation measurement. Further, it provides Patient SafetyNet, a surveillance, remote monitoring, and clinician notification solution; MyView, a wireless presence-detection system; and connectivity devices. Additionally, the company offers Trace, a patient data visualization and reporting software that monitors Masimo Root and Radical-7. The company provides its products directly, as well as through distributors and original equipment manufacturers partners to hospitals, emergency medical service providers, physician offices, long term care facilities, veterinarians and consumers. Masimo Corporation was founded in 1989 and is headquartered in Irvine, California.

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