St Jude Medical (NYSE: STJ) and Endologix (NASDAQ:ELGX) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitabiliy and earnings.

Dividends

St Jude Medical pays an annual dividend of $1.24 per share and has a dividend yield of 1.5%. Endologix does not pay a dividend. St Jude Medical pays out 54.4% of its earnings in the form of a dividend. Endologix has increased its dividend for 6 consecutive years.

Volatility and Risk

St Jude Medical has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Endologix has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

82.7% of St Jude Medical shares are held by institutional investors. 4.8% of St Jude Medical shares are held by insiders. Comparatively, 4.1% of Endologix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares St Jude Medical and Endologix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
St Jude Medical 14.14% 19.40% 6.75%
Endologix -66.43% -48.92% -16.16%

Analyst Ratings

This is a summary of current ratings for St Jude Medical and Endologix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
St Jude Medical 0 4 1 0 2.20
Endologix 0 9 2 0 2.18

St Jude Medical currently has a consensus price target of $77.25, indicating a potential downside of 4.42%. Endologix has a consensus price target of $7.55, indicating a potential upside of 50.10%. Given Endologix’s higher possible upside, analysts plainly believe Endologix is more favorable than St Jude Medical.

Earnings & Valuation

This table compares St Jude Medical and Endologix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
St Jude Medical N/A N/A N/A $2.28 35.45
Endologix $193.17 million 2.16 -$61.29 million ($1.55) -3.25

St Jude Medical has higher revenue, but lower earnings than Endologix. Endologix is trading at a lower price-to-earnings ratio than St Jude Medical, indicating that it is currently the more affordable of the two stocks.

Summary

St Jude Medical beats Endologix on 9 of the 14 factors compared between the two stocks.

About St Jude Medical

St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and neurostimulation devices for the management of chronic pain and movement disorders. The Company’s product categories include tachycardia implantable cardioverter defibrillator systems; atrial fibrillation products (electrophysiology introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems); bradycardia pacemaker systems; vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography imaging products, vascular plugs, heart failure monitoring devices and other vascular accessories); structural heart products (heart valve replacement and repair products and structural heart defect devices); neuromodulation products, and Thoratec products.

About Endologix

Endologix, Inc. is engaged in developing, manufacturing, marketing and selling medical devices for the treatment of aortic disorders. The Company’s products are intended for the treatment of abdominal aortic aneurysms (AAA). The AAA products are built on one of two platforms, including traditional minimally invasive endovascular repair (EVAR) or endovascular sealing (EVAS), its solution for sealing the aneurysm sac while maintaining blood flow through two blood flow lumens. The EVAR products include the Endologix AFX Endovascular AAA System (AFX), the VELA Proximal Endograft (VELA) and the Endologix Powerlink with Intuitrak Delivery System (Intuitrak). The EVAS product is the Nellix EndoVascular Aneurysm Sealing System (Nellix EVAS System). It offers accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, snares, and catheter introducer sheaths.

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