Financial Analysis: EDAP TMS (EDAP) & Boston Scientific Corporation (BSX)
Boston Scientific Corporation (NYSE: BSX) and EDAP TMS (NASDAQ:EDAP) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
Boston Scientific Corporation has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, EDAP TMS has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
This table compares Boston Scientific Corporation and EDAP TMS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boston Scientific Corporation||9.04%||23.62%||9.01%|
Institutional & Insider Ownership
90.4% of Boston Scientific Corporation shares are owned by institutional investors. Comparatively, 9.5% of EDAP TMS shares are owned by institutional investors. 0.7% of Boston Scientific Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Boston Scientific Corporation and EDAP TMS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boston Scientific Corporation||$8.71 billion||4.57||$2.31 billion||$0.58||50.04|
|EDAP TMS||$44.00 million||1.85||$270,377.00||($0.01)||-279.72|
Boston Scientific Corporation has higher revenue and earnings than EDAP TMS. EDAP TMS is trading at a lower price-to-earnings ratio than Boston Scientific Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Boston Scientific Corporation and EDAP TMS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boston Scientific Corporation||0||4||13||0||2.76|
Boston Scientific Corporation presently has a consensus price target of $30.46, suggesting a potential upside of 4.98%. EDAP TMS has a consensus price target of $6.50, suggesting a potential upside of 132.14%. Given EDAP TMS’s stronger consensus rating and higher possible upside, analysts plainly believe EDAP TMS is more favorable than Boston Scientific Corporation.
Boston Scientific Corporation beats EDAP TMS on 11 of the 14 factors compared between the two stocks.
About Boston Scientific Corporation
Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. The Company offers its products by seven businesses: Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology. It operates in three segments: Cardiovascular, Rhythm Management and MedSurg. Its Cardiovascular segment consists of Interventional Cardiology and Peripheral Interventions businesses. Rhythm Management consists of Cardiac Rhythm Management and Electrophysiology businesses. MedSurg consists of Endoscopy, Urology and Pelvic Health, and Neuromodulation businesses. Its Interventional Cardiology product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters and embolic protection devices and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures.
About EDAP TMS
EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.
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