MiMedx Group (NASDAQ:MDXG – Get Rating) and ResMed (NYSE:RMD – Get Rating) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
56.6% of MiMedx Group shares are owned by institutional investors. Comparatively, 64.7% of ResMed shares are owned by institutional investors. 19.9% of MiMedx Group shares are owned by company insiders. Comparatively, 1.4% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares MiMedx Group and ResMed’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
MiMedx Group | -11.18% | N/A | -18.42% |
ResMed | 21.49% | 25.82% | 15.78% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
MiMedx Group | 0 | 0 | 2 | 0 | 3.00 |
ResMed | 0 | 2 | 7 | 0 | 2.78 |
MiMedx Group currently has a consensus target price of $8.25, indicating a potential upside of 42.98%. ResMed has a consensus target price of $263.43, indicating a potential upside of 22.27%. Given MiMedx Group’s stronger consensus rating and higher probable upside, research analysts clearly believe MiMedx Group is more favorable than ResMed.
Volatility & Risk
MiMedx Group has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
Earnings and Valuation
This table compares MiMedx Group and ResMed’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
MiMedx Group | $267.84 million | 2.49 | -$30.20 million | ($0.28) | -20.61 |
ResMed | $3.58 billion | 8.85 | $779.44 million | $5.87 | 36.70 |
ResMed has higher revenue and earnings than MiMedx Group. MiMedx Group is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
Summary
ResMed beats MiMedx Group on 9 of the 13 factors compared between the two stocks.
About MiMedx Group
MiMedx Group, Inc. is a therapeutic biologics company, which engages in the design, manufacture, and marketing of products, and tissue processing services. It serves the wound care, burn, surgical, orthopedic, spine, sports medicine, ophthalmic, and dental sectors of healthcare. Its biomaterial platform technologies include AmnioFix and EpiFix, a tissue allografts derived from amnion and chorion layers of human placental membrane, EpiCord and AmnioCord, a tissue allografts derived from umbilical cord tissue, and AmnioFill, a placental connective tissue matrix derived from the placental disc and other placental tissue. The company was founded on July 30, 1985 and is headquartered in Marietta, GA.
About ResMed
ResMed, Inc. engages in providing digital health and cloud-connected medical devices. Its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases. The firm operates through the Sleep and Respiratory Care and Software as a Service segments. The Sleep and Respiratory Care segment engages in the sleep and respiratory disorders sector of the medical device industry. The Software as a Service segment provides business management software as a service to out-of-hospital health providers. The company was founded by Peter C. Farrell in June 1989 and is headquartered in San Diego, CA.
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