Magna-Lab (OTCMKTS:MAGAA) and Masimo (NASDAQ:MASI) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk and Volatility

Magna-Lab has a beta of 8.87, suggesting that its stock price is 787% more volatile than the S&P 500. Comparatively, Masimo has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Magna-Lab and Masimo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magna-Lab N/A N/A -4,063.64%
Masimo 22.49% 18.61% 15.57%

Analyst Ratings

This is a summary of current ratings and price targets for Magna-Lab and Masimo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magna-Lab 0 0 0 0 N/A
Masimo 0 1 4 0 2.80

Masimo has a consensus target price of $154.50, indicating a potential upside of 1.62%. Given Masimo’s higher possible upside, analysts plainly believe Masimo is more favorable than Magna-Lab.

Earnings & Valuation

This table compares Magna-Lab and Masimo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magna-Lab N/A N/A -$150,000.00 N/A N/A
Masimo $858.29 million 9.45 $193.54 million $3.03 50.18

Masimo has higher revenue and earnings than Magna-Lab.

Institutional and Insider Ownership

83.0% of Masimo shares are owned by institutional investors. 15.3% of Magna-Lab shares are owned by insiders. Comparatively, 11.5% of Masimo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Masimo beats Magna-Lab on 8 of the 10 factors compared between the two stocks.

Magna-Lab Company Profile

Magna-Lab, Inc. is a shell company, which intends to identify and merge with an operating company. The company was founded by Lawrence A. Minkoff on February 22, 1991 and is headquartered in Syosset, NY.

Masimo Company Profile

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies worldwide. The company offers Masimo Signal Extraction Technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. In addition, the company offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, and handheld capnograph and capnometer devices; and O3 regional oximetry for tissue oxygen saturation measurement. Further, it provides Patient SafetyNet, a surveillance, remote monitoring, and clinician notification solution; MyView, a wireless presence-detection system; and connectivity devices. Additionally, the company offers Trace, a patient data visualization and reporting software that monitors Masimo Root and Radical-7. The company provides its products directly, as well as through distributors and original equipment manufacturers partners to hospitals, emergency medical service providers, physician offices, long term care facilities, veterinarians and consumers. Masimo Corporation was founded in 1989 and is headquartered in Irvine, California.

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