Edwards Lifesciences (NYSE: EW) and Edap Tms (NASDAQ:EDAP) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
82.9% of Edwards Lifesciences shares are held by institutional investors. Comparatively, 9.4% of Edap Tms shares are held by institutional investors. 2.1% of Edwards Lifesciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings for Edwards Lifesciences and Edap Tms, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Edwards Lifesciences presently has a consensus target price of $141.94, suggesting a potential upside of 0.79%. Edap Tms has a consensus target price of $6.50, suggesting a potential upside of 195.45%. Given Edap Tms’ stronger consensus rating and higher probable upside, analysts plainly believe Edap Tms is more favorable than Edwards Lifesciences.
This table compares Edwards Lifesciences and Edap Tms’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Edwards Lifesciences and Edap Tms’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Edwards Lifesciences||$3.44 billion||8.61||$583.60 million||$4.10||34.35|
|Edap Tms||$39.28 million||1.62||$4.25 million||($0.08)||-27.50|
Edwards Lifesciences has higher revenue and earnings than Edap Tms. Edap Tms is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Edwards Lifesciences has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Edap Tms has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Edwards Lifesciences beats Edap Tms on 12 of the 15 factors compared between the two stocks.
Edwards Lifesciences Company Profile
Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.
Edap Tms Company Profile
EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.
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