Medtronic (NYSE:MDT) and Beta Bionics (NASDAQ:BBNX) Head to Head Comparison

Beta Bionics (NASDAQ:BBNX) and Medtronic (NYSE:MDT) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares Beta Bionics and Medtronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-61.31%	-26.30%	-23.25%
Medtronic	13.93%	14.78%	7.97%

Earnings & Valuation

This table compares Beta Bionics and Medtronic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$100.25 million	8.26	-$73.20 million	($1.65)	-11.15
Medtronic	$36.36 billion	3.27	$4.80 billion	$4.06	22.92

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

Risk & Volatility

Beta Bionics has a beta of 3.39, meaning that its stock price is 239% more volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

82.1% of Medtronic shares are owned by institutional investors. 5.3% of Beta Bionics shares are owned by insiders. Comparatively, 0.3% of Medtronic shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Beta Bionics and Medtronic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	4	9	1	2.67
Medtronic	1	9	18	0	2.61

Beta Bionics presently has a consensus target price of $24.00, suggesting a potential upside of 30.43%. Medtronic has a consensus target price of $102.88, suggesting a potential upside of 10.57%. Given Beta Bionics’ stronger consensus rating and higher possible upside, research analysts clearly believe Beta Bionics is more favorable than Medtronic.

Summary

Medtronic beats Beta Bionics on 8 of the 14 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.