Senseonics Holdings (NASDAQ: SENS) and Zogenix (NASDAQ:ZGNX) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

87.1% of Zogenix shares are owned by institutional investors. 5.0% of Zogenix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Senseonics Holdings and Zogenix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senseonics Holdings -2,364.01% N/A -272.41%
Zogenix -360.89% -57.74% -31.06%

Earnings and Valuation

This table compares Senseonics Holdings and Zogenix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Senseonics Holdings $884,999.00 202.02 -$43.73 million N/A N/A
Zogenix $22.34 million 16.38 -$68.12 million ($3.26) -4.52

Senseonics Holdings has higher revenue, but lower earnings than Zogenix.

Analyst Ratings

This is a breakdown of recent ratings for Senseonics Holdings and Zogenix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senseonics Holdings 0 0 3 0 3.00
Zogenix 0 0 4 0 3.00

Senseonics Holdings currently has a consensus price target of $4.50, suggesting a potential upside of 136.84%. Zogenix has a consensus price target of $24.75, suggesting a potential upside of 67.80%. Given Senseonics Holdings’ higher possible upside, equities research analysts plainly believe Senseonics Holdings is more favorable than Zogenix.

Summary

Zogenix beats Senseonics Holdings on 6 of the 10 factors compared between the two stocks.

About Senseonics Holdings

Senseonics Holdings, Inc. is a medical technology company. The Company focuses on the design, development and commercialization of glucose monitoring systems. The Company operates through glucose monitoring systems segment. It offers a continuous glucose monitoring (CGM) system, Eversense, which is designed an implantable CGM system designed to continually measure glucose levels in people with diabetes. The Company’s Eversense system consists of components, such as a sensor, which is inserted subcutaneously in the upper arm by a healthcare provider; an external removable smart transmitter that receives, assesses and relays the data from the sensor and also provides vibratory alerts, and a mobile application that receives data from the transmitter and provides real-time glucose readings, alerts and other data on the user’s mobile device, such as a smartphone, Apple Watch or tablet.

About Zogenix

Zogenix, Inc. is a pharmaceutical company engaged in developing and commercializing central nervous system (CNS) therapies that address specific clinical needs for people living with orphan and other CNS disorders. Its primary area of therapeutic focus is epilepsy and related seizure disorders. Its lead product candidate, ZX008, is a low-dose fenfluramine for the treatment of seizures associated with Dravet syndrome. ZX008 has received orphan drug designation in the United States and European Union (EU), for the treatment of Dravet syndrome. The Company has an additional product candidate, Relday (risperidone once-monthly long-acting injectable) for the treatment of schizophrenia. Relday is a long-acting injectable formulation of risperidone. Risperidone is used to treat the symptoms of schizophrenia and bipolar disorder in adults and teenagers 13 years of age and older. It has completed the Phase I program for Relday.

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