Head-To-Head Analysis: Edwards Lifesciences (NYSE:EW) vs. Elekta (OTCMKTS:EKTAY)

Elekta (OTCMKTS:EKTAY) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Elekta and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elekta	-3.32%	11.11%	3.25%
Edwards Lifesciences	17.39%	15.19%	11.71%

Institutional & Insider Ownership

79.5% of Edwards Lifesciences shares are held by institutional investors. 41.3% of Elekta shares are held by company insiders. Comparatively, 0.3% of Edwards Lifesciences shares are held by company 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.

Volatility and Risk

Elekta has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Elekta and Edwards Lifesciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elekta	$1.78 billion	0.99	-$55.38 million	($0.16)	-29.82
Edwards Lifesciences	$6.30 billion	7.55	$1.07 billion	$1.74	47.51

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Elekta and Edwards Lifesciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elekta	2	0	0	0	1.00
Edwards Lifesciences	0	7	17	2	2.81

Edwards Lifesciences has a consensus price target of $99.30, suggesting a potential upside of 20.12%. Given Edwards Lifesciences’ stronger consensus rating and higher possible upside, analysts plainly believe Edwards Lifesciences is more favorable than Elekta.

Summary

Edwards Lifesciences beats Elekta on 13 of the 15 factors compared between the two stocks.

About Elekta

Elekta AB (publ), a medical technology company, provides clinical solutions for treating cancer and brain disorders worldwide. The company offers Versa HD, a brain metastases solution; Elekta Unity for real-time MR visualization; Elekta Harmony, a linear accelerator; Elekta Infinity for treating a range of patients with simple-to-complex radiotherapy needs; Elekta Synergy, a digital accelerator for image guided radiation therapy; treatment and workflow management solutions; radiation and medical oncology; and other patient services. It also provides Elekta Studio, an image guided brachytherapy solution; ImagingRing, a mobile CT scanner; Oncentra Brachy, a smart tool that facilitate repetitive tasks; Venezia applicator that enables the oncologist to treat locally advanced cervical cancer; Elekta Flexitron afterloader for enabling the precise execution of all steps in the workflow; Geneva, an applicator for cervical cancer treatment; veterinary radiation therapy products; and Elekta Kaiku for personalized cancer care. In addition, the company offers stereotactic radiosurgery, such as Leksell Gamma Knife Icon for personalized radiation treatment; Leksell Gamma Knife Perfexion, a tool for radiosurgeons; and Elekta Esprit. Further, it provides neurosurgery products comprising Leksell Vantage Stereotactic System for intracranial neurosurgery; and Leksell Stereotactic System for minimally invasive stereotactic neurosurgery. The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.