Analyzing Insulet (NASDAQ:PODD) and GE HealthCare Technologies (NASDAQ:GEHC)

GE HealthCare Technologies (NASDAQ:GEHC) and Insulet (NASDAQ:PODD) are both large-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

82.1% of GE HealthCare Technologies shares are held by institutional investors. 0.3% of GE HealthCare Technologies shares are held by company insiders. Comparatively, 0.4% of Insulet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

GE HealthCare Technologies has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Insulet has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Profitability

This table compares GE HealthCare Technologies and Insulet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE HealthCare Technologies	10.11%	21.35%	5.91%
Insulet	9.76%	24.36%	10.02%

Valuation and Earnings

This table compares GE HealthCare Technologies and Insulet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE HealthCare Technologies	$20.63 billion	1.80	$2.08 billion	$4.56	17.90
Insulet	$2.07 billion	8.37	$418.30 million	$3.45	71.40

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

Analyst Ratings

This is a summary of current ratings and price targets for GE HealthCare Technologies and Insulet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE HealthCare Technologies	1	6	7	0	2.43
Insulet	0	4	20	0	2.83

GE HealthCare Technologies currently has a consensus target price of $92.50, suggesting a potential upside of 13.34%. Insulet has a consensus target price of $374.10, suggesting a potential upside of 51.86%. Given Insulet’s stronger consensus rating and higher probable upside, analysts clearly believe Insulet is more favorable than GE HealthCare Technologies.

Summary

Insulet beats GE HealthCare Technologies on 9 of the 14 factors compared between the two stocks.

About GE HealthCare Technologies

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, X-ray systems, and women’s health products. The Ultrasound segment provides medical devices and solutions for screening, diagnosis, treatment, and monitoring of certain diseases in clinical areas, such as radiology and primary care, women’s health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment provides medical devices, consumables, services, and digital solutions. Its portfolio includes patient monitoring solutions, anesthesia delivery and respiratory care products, electrocardiogram solutions, maternal infant care products, and consumables and services. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals that are administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes. It has an AI collaboration with Mass General Brigham. The company was formerly known as GE Healthcare Holding LLC and changed its name to GE HealthCare Technologies Inc. in December 2022. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.