Encision (OTCMKTS:ECIA) and ABIOMED (NASDAQ:ABMD) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Volatility and Risk

Encision has a beta of -1.31, indicating that its stock price is 231% less volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Encision 0.77% 3.08% 2.09%
ABIOMED 27.60% 20.09% 17.79%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Encision and ABIOMED, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Encision 0 0 0 0 N/A
ABIOMED 0 0 7 0 3.00

ABIOMED has a consensus target price of $396.00, indicating a potential upside of 23.61%. Given ABIOMED’s higher possible upside, analysts clearly believe ABIOMED is more favorable than Encision.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Encision $8.75 million 0.46 $330,000.00 N/A N/A
ABIOMED $593.75 million 24.30 $112.17 million $2.45 130.76

ABIOMED has higher revenue and earnings than Encision.

Insider and Institutional Ownership

87.1% of ABIOMED shares are owned by institutional investors. 33.5% of Encision shares are owned by insiders. Comparatively, 3.5% of ABIOMED shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

ABIOMED beats Encision on 11 of the 12 factors compared between the two stocks.

Encision Company Profile

Encision Inc., a medical device company, designs, develops, manufactures, and markets patented surgical instruments in the United States. It provides active electrode monitoring (AEM) surgical instruments and monitors that enhance patient safety and patient outcomes in laparoscopic surgical procedures. The company's AEM instruments product line includes a range of endo-mechanical instruments, including scissors, graspers, and dissectors, as well as fixed-tip electrodes and suction-irrigation electrodes. It also provides various handles, which are used for advanced laparoscopic procedures that incorporate stiffer shafts and ergonomic features; AEM EndoShield 2 burn protection systems; and AEM Burn Protection Cable, as well as markets AEM monitor product line that is used in conjunction with AEM instruments. The company sells its products through a network of direct and independent sales representatives. Encision Inc. was founded in 1991 and is based in Boulder, Colorado.

ABIOMED Company Profile

ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.

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