Intuitive Surgical (NASDAQ:ISRG) vs. Terumo (OTCMKTS:TRUMY) Head to Head Review

Intuitive Surgical (NASDAQ:ISRG) and Terumo (OTCMKTS:TRUMY) are both large-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Intuitive Surgical and Terumo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intuitive Surgical	$10.06 billion	14.98	$2.86 billion	$8.73	48.88
Terumo	$7.52 billion	2.87	$897.03 million	$0.71	20.62

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

Insider & Institutional Ownership

83.6% of Intuitive Surgical shares are owned by institutional investors. 0.6% of Intuitive Surgical shares are owned by 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.

Risk and Volatility

Intuitive Surgical has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Terumo has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Intuitive Surgical and Terumo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intuitive Surgical	1	7	22	1	2.74
Terumo	0	0	0	2	4.00

Intuitive Surgical currently has a consensus target price of $498.83, indicating a potential upside of 16.90%. Given Intuitive Surgical’s higher possible upside, equities analysts plainly believe Intuitive Surgical is more favorable than Terumo.

Profitability

This table compares Intuitive Surgical and Terumo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intuitive Surgical	28.45%	16.91%	14.83%
Terumo	13.83%	10.44%	7.34%

Summary

Intuitive Surgical beats Terumo on 13 of the 15 factors compared between the two stocks.

About Intuitive Surgical

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.

About Terumo

Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.