Thoratec (NASDAQ: THOR) and Intuitive Surgical (NASDAQ:ISRG) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares Thoratec and Intuitive Surgical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Thoratec N/A N/A N/A N/A N/A
Intuitive Surgical $2.87 billion 12.74 $1.08 billion $20.88 47.14

Intuitive Surgical has higher revenue and earnings than Thoratec.

Analyst Recommendations

This is a summary of current ratings and target prices for Thoratec and Intuitive Surgical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thoratec 0 0 0 0 N/A
Intuitive Surgical 0 5 12 0 2.71

Intuitive Surgical has a consensus target price of $972.20, suggesting a potential downside of 1.23%. Given Intuitive Surgical’s higher possible upside, analysts plainly believe Intuitive Surgical is more favorable than Thoratec.

Institutional and Insider Ownership

96.1% of Intuitive Surgical shares are held by institutional investors. 2.5% of Intuitive Surgical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Thoratec and Intuitive Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thoratec 10.29% 8.02% 6.71%
Intuitive Surgical 28.44% 15.99% 14.06%

Summary

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

Thoratec Company Profile

Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.

Intuitive Surgical Company Profile

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.

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