Head-To-Head Contrast: Boston Scientific (NYSE:BSX) versus Outset Medical (NASDAQ:OM)

Outset Medical (NASDAQ:OM) and Boston Scientific (NYSE:BSX) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Risk and Volatility

Outset Medical has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Boston Scientific has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Insider & Institutional Ownership

89.1% of Boston Scientific shares are owned by institutional investors. 2.5% of Outset Medical shares are owned by insiders. Comparatively, 0.3% of Boston Scientific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Outset Medical and Boston Scientific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outset Medical	$119.48 million	0.56	-$81.65 million	($4.09)	-0.88
Boston Scientific	$20.07 billion	3.45	$2.90 billion	$2.47	19.37

Boston Scientific has higher revenue and earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than Boston Scientific, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Outset Medical and Boston Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outset Medical	-63.06%	-61.67%	-28.25%
Boston Scientific	17.50%	19.28%	10.89%

Analyst Recommendations

This is a summary of current ratings and target prices for Outset Medical and Boston Scientific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outset Medical	1	1	3	0	2.40
Boston Scientific	2	5	24	0	2.71

Outset Medical currently has a consensus target price of $10.00, suggesting a potential upside of 178.55%. Boston Scientific has a consensus target price of $71.62, suggesting a potential upside of 49.67%. Given Outset Medical’s higher probable upside, analysts clearly believe Outset Medical is more favorable than Boston Scientific.

Summary

Boston Scientific beats Outset Medical on 11 of the 14 factors compared between the two stocks.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.