Edwards Lifesciences (NYSE:EW) versus Beta Bionics (NASDAQ:BBNX) Critical Contrast

Edwards Lifesciences (NYSE:EW) and Beta Bionics (NASDAQ:BBNX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Edwards Lifesciences and Beta Bionics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edwards Lifesciences	0	8	16	3	2.81
Beta Bionics	1	3	6	1	2.64

Edwards Lifesciences currently has a consensus target price of $95.96, indicating a potential upside of 9.80%. Beta Bionics has a consensus target price of $19.70, indicating a potential upside of 45.01%. Given Beta Bionics’ higher possible upside, analysts clearly believe Beta Bionics is more favorable than Edwards Lifesciences.

Profitability

This table compares Edwards Lifesciences and Beta Bionics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edwards Lifesciences	17.39%	15.19%	11.71%
Beta Bionics	-60.27%	-23.00%	-20.55%

Volatility and Risk

Edwards Lifesciences has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.4, meaning that its stock price is 240% more volatile than the S&P 500.

Earnings & Valuation

This table compares Edwards Lifesciences and Beta Bionics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edwards Lifesciences	$6.07 billion	8.29	$1.07 billion	$1.88	46.48
Beta Bionics	$100.25 million	6.04	-$73.20 million	($1.51)	-9.00

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

Institutional and Insider Ownership

79.5% of Edwards Lifesciences shares are held by institutional investors. 0.3% of Edwards Lifesciences shares are held by insiders. Comparatively, 5.3% of Beta Bionics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Edwards Lifesciences beats Beta Bionics on 12 of the 15 factors compared between the two stocks.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.