Intuitive Surgical (ISRG) & ABIOMED (ABMD) Head to Head Analysis

Intuitive Surgical (NASDAQ: ISRG) and ABIOMED (NASDAQ:ABMD) are both large-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

61.6% of Intuitive Surgical shares are owned by institutional investors. Comparatively, 87.0% of ABIOMED shares are owned by institutional investors. 2.2% of Intuitive Surgical shares are owned by company insiders. Comparatively, 7.0% of ABIOMED shares are owned by company 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 Intuitive Surgical and ABIOMED’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intuitive Surgical 21.09% 19.93% 17.02%
ABIOMED 16.58% 15.54% 13.40%

Earnings & Valuation

This table compares Intuitive Surgical and ABIOMED’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intuitive Surgical $3.13 billion 15.14 $660.00 million $5.68 74.25
ABIOMED $445.30 million 26.90 $52.11 million $2.46 109.95

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

Analyst Recommendations

This is a summary of current ratings and target prices for Intuitive Surgical and ABIOMED, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuitive Surgical 0 5 12 0 2.71
ABIOMED 0 2 6 0 2.75

Intuitive Surgical presently has a consensus price target of $406.13, suggesting a potential downside of 3.70%. ABIOMED has a consensus price target of $301.50, suggesting a potential upside of 11.47%. Given ABIOMED’s stronger consensus rating and higher possible upside, analysts clearly believe ABIOMED is more favorable than Intuitive Surgical.

Volatility & Risk

Intuitive Surgical has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Intuitive Surgical beats ABIOMED on 8 of the 14 factors compared between the two stocks.

About Intuitive Surgical

Intuitive Surgical, Inc. (Intuitive) designs, manufactures and markets da Vinci Surgical Systems, and related instruments and accessories. The Company’s da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a vision system. The da Vinci Surgical System translates a surgeon’s hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports. The da Vinci Surgical System provides its operating surgeons with control, range of motion, tissue manipulation capability and three-dimensional (3-D), high-definition (HD) vision. Intuitive has four generations of da Vinci Surgical System: the da Vinci Xi Surgical System, the da Vinci Si Surgical System, the da Vinci S Surgical System and the standard da Vinci Surgical System. The Company’s instruments and accessories include EndoWrist Instruments and da Vinci Single-Site.

About ABIOMED

ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.

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