Cerner Corporation (NASDAQ: CERN) and Cynosure (NASDAQ:CYNO) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Profitability

This table compares Cerner Corporation and Cynosure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerner Corporation 13.47% 18.18% 12.93%
Cynosure 0.70% 0.75% 0.59%

Insider & Institutional Ownership

82.3% of Cerner Corporation shares are owned by institutional investors. 13.2% of Cerner Corporation shares are owned by insiders. Comparatively, 2.9% of Cynosure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cerner Corporation and Cynosure’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cerner Corporation $4.90 billion 4.26 $1.37 billion $1.98 31.77
Cynosure N/A N/A N/A $0.65 101.49

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

Analyst Recommendations

This is a breakdown of recent ratings for Cerner Corporation and Cynosure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerner Corporation 0 13 7 0 2.35
Cynosure 0 3 4 0 2.57

Cerner Corporation presently has a consensus target price of $65.47, indicating a potential upside of 4.07%. Cynosure has a consensus target price of $58.57, indicating a potential downside of 11.22%. Given Cerner Corporation’s higher possible upside, research analysts clearly believe Cerner Corporation is more favorable than Cynosure.

Risk and Volatility

Cerner Corporation has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Cynosure has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Summary

Cerner Corporation beats Cynosure on 9 of the 11 factors compared between the two stocks.

About Cerner Corporation

Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, the Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The Company’s solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform.

About Cynosure

Cynosure, Inc. develops, manufactures and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, reduce fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve women’s health. The Company also markets radiofrequency (RF), energy-sourced medical devices for surgical applications, such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. The Company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names. Its product portfolio includes single energy source systems, as well as workstations that incorporate two or more different types of lasers or light-based technologies.

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