Comparing DexCom (DXCM) & The Competition

DexCom (NASDAQ: DXCM) is one of 89 publicly-traded companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it weigh in compared to its competitors? We will compare DexCom to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, profitability, earnings and dividends.

Valuation & Earnings

This table compares DexCom and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
DexCom $573.30 million -$65.60 million -89.02
DexCom Competitors $1.03 billion $127.87 million 193.39

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

Analyst Recommendations

This is a summary of recent ratings and target prices for DexCom and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DexCom 0 7 13 0 2.65
DexCom Competitors 207 1276 2772 100 2.63

DexCom presently has a consensus target price of $70.69, indicating a potential upside of 39.33%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 5.09%. Given DexCom’s stronger consensus rating and higher probable upside, research analysts plainly believe DexCom is more favorable than its competitors.

Risk and Volatility

DexCom has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, DexCom’s competitors have a beta of 1.11, suggesting that their average stock price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

67.3% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by institutional investors. 1.7% of DexCom shares are owned by insiders. Comparatively, 11.7% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned 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.

Profitability

This table compares DexCom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DexCom -7.21% -20.44% -10.59%
DexCom Competitors -128.91% -39.16% -10.28%

Summary

DexCom competitors beat DexCom on 7 of the 12 factors compared.

DexCom Company Profile

Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile. The Company is commercializing its fifth generation CGM system. The Company’s markets DexCom G4 PLATINUM under a Conformite Europeenne Marking (CE Mark), in the European Union, Australia, New Zealand and the countries in Asia and Latin America, and in the United States with approval from the United States Food and Drug Administration (FDA). The DexCom G4 PLATINUM with Share remote monitoring system uses a wireless connection between a patient’s receiver and an application on the patient’s iPhone, iPod touch, or iPad to transmit glucose information to applications on the mobile devices of designated recipients (followers).

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