Critical Review: Arrayit (OTCMKTS:ARYC) and Edwards Lifesciences (NYSE:EW)

Arrayit (OTCMKTS:ARYC) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

79.5% of Edwards Lifesciences shares are owned by institutional investors. 58.0% of Arrayit shares are owned by insiders. Comparatively, 1.3% of Edwards Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Arrayit and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrayit	N/A	N/A	N/A
Edwards Lifesciences	17.69%	14.50%	11.21%

Earnings and Valuation

This table compares Arrayit and Edwards Lifesciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrayit	N/A	N/A	N/A	N/A	N/A
Edwards Lifesciences	$6.07 billion	7.77	$1.07 billion	$1.83	44.70

Edwards Lifesciences has higher revenue and earnings than Arrayit.

Analyst Recommendations

This is a breakdown of recent recommendations for Arrayit and Edwards Lifesciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrayit	0	0	0	0	0.00
Edwards Lifesciences	0	9	16	3	2.79

Edwards Lifesciences has a consensus price target of $95.96, suggesting a potential upside of 17.31%. Given Edwards Lifesciences’ stronger consensus rating and higher possible upside, analysts clearly believe Edwards Lifesciences is more favorable than Arrayit.

Summary

Edwards Lifesciences beats Arrayit on 9 of the 10 factors compared between the two stocks.

About Arrayit

Arrayit Corporation, a life sciences technology company, develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation, biological function, and diagnostics worldwide. The company is involved in the development and support of microarray tools and components; custom printing and analysis of microarrays for research; and the identification and development of diagnostic microarrays and tools for early detection of treatable disease states. It offers microarray printing technology, which allows the manufacture of DNA, protein, antibody, lipid, carbohydrate, and other types of microarrays for research and diagnostic applications, including gene expression, genotyping, protein profiling, and others. The company also provides automated microarray manufacturing instruments, including NanoPrint, SpotBot Titan, SpotBot Extreme, SpotBo Protein, and Personal microarrayers, as well as SpotLight CCD fluorescence scanners, SpotWare colorimetric scanners, InnoScan laser scanners, TrayMix hybridization stations, ArrayMix hybridization stations, centrifuges, air jets, vacuum products, and laboratory tools and bioinformatics computers. In addition, it manufactures consumables, such as glass substrates and slides, reagents, solutions, kits, and clean room supplies; and provides variation identification platform technology that allows diagnostic tests to be performed by depositing approximately 100,000 patient samples onto a single microarray. Further, the company is involved in the import, export, manufacture, and distribution of wholesale industrial chemicals. Arrayit Corporation offers its tools and services to genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, government agencies, and biotechnology companies. The company is headquartered in Sunnyvale, California.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.