Analyzing Masimo Corporation (NASDAQ:MASI) and Apollo Endosurgery (APEN)

Masimo Corporation (NASDAQ: MASI) and Apollo Endosurgery (NASDAQ:APEN) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Risk & Volatility



Masimo Corporation has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Apollo Endosurgery has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Masimo Corporation and Apollo Endosurgery, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masimo Corporation 0 3 4 0 2.57
Apollo Endosurgery 0 0 3 0 3.00

Masimo Corporation currently has a consensus price target of $97.00, indicating a potential upside of 9.96%. Apollo Endosurgery has a consensus price target of $11.00, indicating a potential upside of 166.34%. Given Apollo Endosurgery’s stronger consensus rating and higher probable upside, analysts plainly believe Apollo Endosurgery is more favorable than Masimo Corporation.

Insider and Institutional Ownership

82.9% of Masimo Corporation shares are owned by institutional investors. Comparatively, 8.9% of Apollo Endosurgery shares are owned by institutional investors. 16.6% of Masimo Corporation shares are owned by insiders. Comparatively, 74.2% of Apollo Endosurgery shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Masimo Corporation and Apollo Endosurgery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masimo Corporation 45.90% 23.45% 16.22%
Apollo Endosurgery -62.31% -113.42% -43.00%

Valuation and Earnings

This table compares Masimo Corporation and Apollo Endosurgery’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Masimo Corporation $730.06 million 6.28 $182.11 million $6.14 14.37
Apollo Endosurgery $63.01 million 1.13 -$10.53 million ($36.74) -0.11

Masimo Corporation has higher revenue and earnings than Apollo Endosurgery. Apollo Endosurgery is trading at a lower price-to-earnings ratio than Masimo Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Masimo Corporation beats Apollo Endosurgery on 10 of the 13 factors compared between the two stocks.

Masimo Corporation Company Profile

Masimo Corporation is a medical technology company that develops, manufactures and markets a range of non-invasive patient monitoring technologies. The Company’s business is Measure-through Motion and Low Perfusion pulse oximetry monitoring, known as Masimo Signal Extraction Technology (SET) pulse oximetry. Its product offerings include non-invasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical, brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring. In addition, the Company has developed the Root patient monitoring and connectivity platform, the Radical-7 bedside and portable patient monitor, and the Radius-7 wearable wireless patient monitor. It offers Patient SafetyNet remote patient surveillance monitoring system, which allows patients to be monitored through a personal computer-based monitor or by care providers through their pagers, voice-over-Internet Protocol (IP) phones or smartphones.

Apollo Endosurgery Company Profile

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.

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