DexCom (NASDAQ: DXCM) and Halyard Health (NYSE:HYH) are both mid-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Volatility and Risk

DexCom has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Halyard Health has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

91.0% of Halyard Health shares are held by institutional investors. 1.7% of DexCom shares are held by insiders. Comparatively, 1.3% of Halyard Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DexCom and Halyard Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DexCom -10.27% -27.90% -16.20%
Halyard Health 3.06% 8.29% 4.44%

Analyst Ratings

This is a breakdown of recent ratings for DexCom and Halyard Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DexCom 0 4 14 0 2.78
Halyard Health 0 1 3 0 2.75

DexCom presently has a consensus target price of $87.64, indicating a potential upside of 21.14%. Halyard Health has a consensus target price of $41.67, indicating a potential downside of 8.59%. Given DexCom’s stronger consensus rating and higher probable upside, research analysts clearly believe DexCom is more favorable than Halyard Health.

Earnings and Valuation

This table compares DexCom and Halyard Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DexCom $632.70 million 9.90 -$63.30 million ($0.77) -93.96
Halyard Health $1.60 billion 1.33 $182.00 million $1.03 44.25

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

Summary

Halyard Health beats DexCom on 8 of the 13 factors compared between the two stocks.

About DexCom

Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile. The Company is commercializing its fifth generation CGM system. The Company’s markets DexCom G4 PLATINUM under a Conformite Europeenne Marking (CE Mark), in the European Union, Australia, New Zealand and the countries in Asia and Latin America, and in the United States with approval from the United States Food and Drug Administration (FDA). The DexCom G4 PLATINUM with Share remote monitoring system uses a wireless connection between a patient’s receiver and an application on the patient’s iPhone, iPod touch, or iPad to transmit glucose information to applications on the mobile devices of designated recipients (followers).

About Halyard Health

Halyard Health, Inc. is a medical technology company. The Company operates through two segments: Medical Devices and Surgical and Infection Prevention (S&IP). The Medical Devices segment provides a portfolio of product offerings focused on pain management, respiratory and digestive health. The S&IP segment provides healthcare supplies and solutions that target the prevention of healthcare-associated infections. The Company address healthcare needs, such as reducing the use of opioids, while helping patients move from surgery to recovery. The Medical Devices segment’s products include post-operative pain management solutions, minimally invasive interventional (or chronic) pain therapies, closed airway suction systems and enteral feeding tubes. The S&IP segment includes product offerings, such as sterilization wrap, surgical drapes and gowns, facial protection, protective apparel and medical exam gloves.

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