Zeltiq Aesthetics (NASDAQ: ZLTQ) and Pacific Biosciences of California (NASDAQ:PACB) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Zeltiq Aesthetics and Pacific Biosciences of California’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zeltiq Aesthetics 9.78% 31.74% 20.11%
Pacific Biosciences of California -95.97% -97.50% -59.40%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Zeltiq Aesthetics and Pacific Biosciences of California, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zeltiq Aesthetics 0 8 1 0 2.11
Pacific Biosciences of California 0 2 1 0 2.33

Zeltiq Aesthetics currently has a consensus price target of $56.25, indicating a potential downside of 0.41%. Pacific Biosciences of California has a consensus price target of $6.27, indicating a potential upside of 138.28%. Given Pacific Biosciences of California’s stronger consensus rating and higher possible upside, analysts plainly believe Pacific Biosciences of California is more favorable than Zeltiq Aesthetics.

Institutional and Insider Ownership

70.5% of Pacific Biosciences of California shares are held by institutional investors. 15.6% of Zeltiq Aesthetics shares are held by company insiders. Comparatively, 17.8% of Pacific Biosciences of California shares are held 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 Zeltiq Aesthetics and Pacific Biosciences of California’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zeltiq Aesthetics N/A N/A N/A ($0.03) -1,882.67
Pacific Biosciences of California $90.71 million 3.37 -$74.37 million ($0.91) -2.89

Zeltiq Aesthetics has higher earnings, but lower revenue than Pacific Biosciences of California. Zeltiq Aesthetics is trading at a lower price-to-earnings ratio than Pacific Biosciences of California, indicating that it is currently the more affordable of the two stocks.

Summary

Pacific Biosciences of California beats Zeltiq Aesthetics on 6 of the 10 factors compared between the two stocks.

About Zeltiq Aesthetics

ZELTIQ Aesthetics, Inc. is a medical technology company. The Company focuses on developing and commercializing products utilizing its controlled-cooling technology platform. The Company’s product, the CoolSculpting System, is designed to reduce stubborn fat bulges. The Company sells its CoolSculpting system primarily to dermatologists, plastic surgeons, aesthetic specialists and obstetrics and gynecology (OBGYN) physicians. It also offers consumables, which are CoolSculpting procedure packs that are needed to perform procedures using its CoolSculpting system. CoolSculpting is a non-invasive fat reduction procedure. CoolSculpting utilizes its controlled cooling technology to selectively reduce stubborn fat bulges. The CoolSculpting system includes CoolSculpting control unit and CoolSculpting applicators. The CoolSculpting Applicator delivers vacuum suction and cooling to the fat bulge being treated.

About Pacific Biosciences of California

Pacific Biosciences of California, Inc. designs, develops and manufactures sequencing systems to help scientists resolve genetically complex problems. The Company is engaged in the development, manufacturing and marketing of an integrated platform for genetic analysis. Its Single Molecule, Real-Time (SMRT) technology enables single molecule, real-time detection of biological processes. It offers The SMRT Cell, Phospholinked nucleotides and The PacBio RS II and Sequel instruments. Its SMRT technology enables the observation of deoxyribonucleic acid (DNA) synthesis as it occurs in real-time by harnessing the natural process of DNA replication, which is actuated by the DNA polymerase. Its phospholinked nucleotides have a fluorescent dye attached to the phosphate chain of the nucleotide rather than to the base. The PacBio RS II and Sequel instruments include optics, automated liquid handling, a touchscreen control interface and computational hardware and software.

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