Head-To-Head Comparison: Abaxis (ABAX) & Zeltiq Aesthetics (ZLTQ)

Abaxis (NASDAQ: ABAX) and Zeltiq Aesthetics (NASDAQ:ZLTQ) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Abaxis and Zeltiq Aesthetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abaxis 11.98% 10.18% 8.84%
Zeltiq Aesthetics 9.78% 31.74% 20.11%

Institutional & Insider Ownership

97.7% of Abaxis shares are held by institutional investors. 4.3% of Abaxis shares are held by insiders. Comparatively, 15.6% of Zeltiq Aesthetics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Abaxis and Zeltiq Aesthetics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abaxis $227.22 million 6.24 $32.71 million $1.20 52.03
Zeltiq Aesthetics N/A N/A N/A ($0.03) -1,882.67

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

Analyst Ratings

This is a summary of current ratings for Abaxis and Zeltiq Aesthetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abaxis 1 4 2 0 2.14
Zeltiq Aesthetics 0 8 1 0 2.11

Abaxis currently has a consensus price target of $47.63, indicating a potential downside of 23.73%. Zeltiq Aesthetics has a consensus price target of $56.25, indicating a potential downside of 0.41%. Given Zeltiq Aesthetics’ higher probable upside, analysts plainly believe Zeltiq Aesthetics is more favorable than Abaxis.

Dividends

Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Zeltiq Aesthetics does not pay a dividend. Abaxis pays out 53.3% of its earnings in the form of a dividend.

Summary

Abaxis beats Zeltiq Aesthetics on 8 of the 13 factors compared between the two stocks.

Abaxis Company Profile

Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.

Zeltiq Aesthetics Company Profile

ZELTIQ Aesthetics, Inc. is a medical technology company. The Company focuses on developing and commercializing products utilizing its controlled-cooling technology platform. The Company’s product, the CoolSculpting System, is designed to reduce stubborn fat bulges. The Company sells its CoolSculpting system primarily to dermatologists, plastic surgeons, aesthetic specialists and obstetrics and gynecology (OBGYN) physicians. It also offers consumables, which are CoolSculpting procedure packs that are needed to perform procedures using its CoolSculpting system. CoolSculpting is a non-invasive fat reduction procedure. CoolSculpting utilizes its controlled cooling technology to selectively reduce stubborn fat bulges. The CoolSculpting system includes CoolSculpting control unit and CoolSculpting applicators. The CoolSculpting Applicator delivers vacuum suction and cooling to the fat bulge being treated.

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