Masimo (NASDAQ:MASI – Get Free Report) and Sight Sciences (NASDAQ:SGHT – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Risk and Volatility
Masimo has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Sight Sciences has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Masimo and Sight Sciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Masimo | 1 | 3 | 4 | 0 | 2.38 |
| Sight Sciences | 1 | 3 | 4 | 0 | 2.38 |
Valuation and Earnings
This table compares Masimo and Sight Sciences”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Masimo | $2.09 billion | 3.59 | -$304.90 million | ($10.54) | -13.27 |
| Sight Sciences | $79.87 million | 4.37 | -$51.51 million | ($0.90) | -7.33 |
Sight Sciences has lower revenue, but higher earnings than Masimo. Masimo is trading at a lower price-to-earnings ratio than Sight Sciences, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Masimo and Sight Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Masimo | -33.20% | 33.04% | 13.92% |
| Sight Sciences | -60.63% | -61.59% | -36.11% |
Institutional and Insider Ownership
86.0% of Masimo shares are owned by institutional investors. Comparatively, 55.5% of Sight Sciences shares are owned by institutional investors. 9.7% of Masimo shares are owned by company insiders. Comparatively, 30.9% of Sight Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
About Masimo
Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.
About Sight Sciences
Sight Sciences, Inc., an ophthalmic medical device company, engages in the development and commercialization of surgical and nonsurgical technologies for the treatment of eye diseases. It operates through two segments, Surgical Glaucoma and Dry Eye. The company's products include OMNI Surgical System, an implant-free glaucoma surgery technology indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and SION Surgical Instrument, a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. It also offers TearCare System, a wearable eyelid technology for adult patients with evaporative dry eye disease due to meibomian gland dysfunction, as well as related components. It offers its products through sales representatives and distributors to hospitals, medical centers, and eyecare professionals in the United States. Sight Sciences, Inc. was incorporated in 2010 and is headquartered in Menlo Park, California.
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