ABIOMED (NASDAQ: ABMD) and Hologic (NASDAQ:HOLX) are both large-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for ABIOMED and Hologic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABIOMED 0 2 6 0 2.75
Hologic 0 3 10 1 2.86

ABIOMED presently has a consensus target price of $272.33, suggesting a potential upside of 18.66%. Hologic has a consensus target price of $48.79, suggesting a potential upside of 25.74%. Given Hologic’s stronger consensus rating and higher probable upside, analysts plainly believe Hologic is more favorable than ABIOMED.

Profitability

This table compares ABIOMED and Hologic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ABIOMED 16.58% 15.54% 13.40%
Hologic 24.70% 21.69% 7.20%

Institutional & Insider Ownership

90.7% of ABIOMED shares are owned by institutional investors. Comparatively, 92.8% of Hologic shares are owned by institutional investors. 7.0% of ABIOMED shares are owned by company insiders. Comparatively, 0.8% of Hologic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

ABIOMED has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Hologic has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares ABIOMED and Hologic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABIOMED $445.30 million 22.82 $52.11 million $1.98 115.91
Hologic $3.06 billion 3.67 $755.50 million $2.64 14.70

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

Summary

Hologic beats ABIOMED on 11 of the 15 factors compared between the two stocks.

ABIOMED Company Profile

ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.

Hologic Company Profile

Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products with an emphasis on women’s health. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The diagnostics products include Aptima family of assays, ThinPrep system, the Rapid Fetal Fibronectin Test and Procleix blood screening assays. It offers viral load assays for the quantitation of Hepatitis B Virus (HBV), Hepatitis C Virus (HCV) and Human Immunodeficiency Virus-1 (HIV-1). The Breast Health products include breast imaging and related products and accessories, including digital mammography systems, computer-aided detection (CAD) and breast biopsy guidance systems. The GYN Surgical products include NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment offers Discovery and Horizon X-ray bone densitometers and mini C-arm imaging systems.

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