ABIOMED (NASDAQ: ABMD) and LeMaitre Vascular (NASDAQ:LMAT) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ABIOMED and LeMaitre Vascular, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABIOMED 0 1 7 0 2.88
LeMaitre Vascular 0 3 3 0 2.50

ABIOMED currently has a consensus target price of $167.57, suggesting a potential downside of 0.72%. LeMaitre Vascular has a consensus target price of $30.00, suggesting a potential downside of 19.29%. Given ABIOMED’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ABIOMED is more favorable than LeMaitre Vascular.

Dividends

LeMaitre Vascular pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. ABIOMED does not pay a dividend. LeMaitre Vascular pays out 31.9% of its earnings in the form of a dividend.

Institutional & Insider Ownership

89.7% of ABIOMED shares are owned by institutional investors. Comparatively, 66.3% of LeMaitre Vascular shares are owned by institutional investors. 7.0% of ABIOMED shares are owned by company insiders. Comparatively, 23.7% of LeMaitre Vascular shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ABIOMED and LeMaitre Vascular’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ABIOMED $474.78 million 15.68 $110.92 million $1.69 99.87
LeMaitre Vascular $96.40 million 7.33 $23.12 million $0.69 53.87

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

Volatility & Risk

ABIOMED has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, LeMaitre Vascular has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares ABIOMED and LeMaitre Vascular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ABIOMED 16.13% 13.03% 10.98%
LeMaitre Vascular 14.19% 15.02% 12.97%

Summary

ABIOMED beats LeMaitre Vascular on 11 of the 16 factors compared between the two stocks.

About ABIOMED

ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.

About LeMaitre Vascular

LeMaitre Vascular, Inc. is a provider of medical devices for the treatment of peripheral vascular disease. The Company develops, manufactures and markets medical devices and implants used primarily in the field of vascular surgery. It is engaged in the design, marketing, sales and technical support of medical devices and implants for the treatment of peripheral vascular disease industry segment. The Company’s product lines include valvulotomes, balloon catheters, carotid shunts, biologic vascular patches, radiopaque marking tape, anastomotic clips, remote endarterectomy devices, laparoscopic cholecystectomy devices, prosthetic vascular grafts, biologic vascular grafts and powered phlebectomy devices. Its portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart, including the Expandable LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt, VascuTape Radiopaque Tape and the XenoSure biologic patch.

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