Critical Analysis: iRhythm Technologies (IRTC) & Its Rivals

iRhythm Technologies (NASDAQ:IRTC) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its peers? We will compare iRhythm Technologies to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Institutional & Insider Ownership

40.6% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 1.0% of iRhythm Technologies shares are held by insiders. Comparatively, 15.0% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares iRhythm Technologies and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
iRhythm Technologies	$854.04 million	-$44.55 million	-73.56
iRhythm Technologies Competitors	$1.89 billion	$136.85 million	12.52

iRhythm Technologies’ peers have higher revenue and earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

iRhythm Technologies has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, iRhythm Technologies’ peers have a beta of 2.57, indicating that their average share price is 157% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for iRhythm Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	1	2	12	2	2.88
iRhythm Technologies Competitors	4290	10573	18346	830	2.46

iRhythm Technologies presently has a consensus price target of $166.93, suggesting a potential upside of 93.97%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 20.45%. Given iRhythm Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe iRhythm Technologies is more favorable than its peers.

Profitability

This table compares iRhythm Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-4.52%	26.88%	4.32%
iRhythm Technologies Competitors	-304.10%	-178.81%	-22.11%

Summary

iRhythm Technologies beats its peers on 7 of the 13 factors compared.

About iRhythm Technologies

iRhythm Technologies is a medical technology company that develops digital solutions for detecting and monitoring heart rhythm disorders. Its services combine wearable electrocardiogram (ECG) devices with cloud-based data analysis and clinical reporting to help healthcare professionals assess patients for conditions such as cardiac arrhythmias. The company’s Zio product line includes wearable ECG monitors, such as Zio XT, which records a patient’s heart activity during an extended monitoring period. iRhythm also offers Zio AT, a monitoring service designed to provide clinicians with ECG data during the monitoring period.