Alere (NYSE: ALR) and Hansen Medical (NASDAQ:HNSN) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Profitability

This table compares Alere and Hansen Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alere -10.73% 4.54% 1.01%
Hansen Medical -317.95% N/A -96.52%

Risk and Volatility

Alere has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Hansen Medical has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Insider and Institutional Ownership

89.3% of Alere shares are held by institutional investors. 3.7% of Alere shares are held by company 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.

Earnings & Valuation

This table compares Alere and Hansen Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alere $2.32 billion 1.92 $261.20 million ($2.45) -20.81
Hansen Medical N/A N/A N/A N/A N/A

Alere has higher revenue and earnings than Hansen Medical.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alere and Hansen Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alere 0 5 0 0 2.00
Hansen Medical 0 0 0 0 N/A

Alere presently has a consensus target price of $48.00, suggesting a potential downside of 5.86%. Given Alere’s higher probable upside, analysts plainly believe Alere is more favorable than Hansen Medical.

Summary

Alere beats Hansen Medical on 7 of the 8 factors compared between the two stocks.

About Alere

Alere Inc. is a provider of health information through diagnostic tests. The Company’s segments include professional diagnostics, consumer diagnostics, and corporate and other. The professional diagnostics segment includes an array of diagnostic test products and other in vitro diagnostic tests marketed to medical professionals and laboratories for detection of diseases and conditions within its areas of focus. The consumer diagnostics segment consists primarily of manufacturing operations related to its role as the exclusive manufacturer of products for SPD Swiss Precision Diagnostics (SPD), its joint venture with The Procter & Gamble Company (P&G). The Company’s professional diagnostic solutions allow patients and their healthcare providers to work together to manage patients’ conditions over the continuum of care, from the hospital to home. The Company offers lines of drugs-of-abuse tests, reagent systems and laboratory testing options.

About Hansen Medical

Hansen Medical, Inc. is engaged in the development and marketing of medical devices. The Company develops, manufactures and sells a range of medical robotics designed for positioning, manipulation and stable control of catheters and catheter-based technologies. Its products include Sensei Robotic Catheter System (Sensei system), Artisan Extend Control Catheter, CoHesion 3D Visualization Module and Magellan System. Its Sensei system allows physicians to navigate catheters in interventional procedures within the atrial heart chambers. Its disposable Artisan Extend catheter assembly consists of a telescoping set of control catheters. Its CoHesion 3D Visualization Module is a software interface between its Sensei system and the St. Jude Medical EnSite System for Electro-Physiology procedures. The Magellan System controls the Magellan Robotic Catheter, which is a telescoping, steerable catheter designed to facilitate remote catheter navigation and vessel cannulation.

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