AtriCure (NASDAQ: ATRC) and DENTSPLY SIRONA (NASDAQ:XRAY) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

82.1% of AtriCure shares are held by institutional investors. Comparatively, 94.0% of DENTSPLY SIRONA shares are held by institutional investors. 10.0% of AtriCure shares are held by insiders. Comparatively, 2.0% of DENTSPLY SIRONA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AtriCure and DENTSPLY SIRONA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 1 6 0 2.86
DENTSPLY SIRONA 1 2 8 0 2.64

AtriCure currently has a consensus price target of $24.83, suggesting a potential upside of 22.57%. DENTSPLY SIRONA has a consensus price target of $66.20, suggesting a potential upside of 13.28%. Given AtriCure’s stronger consensus rating and higher probable upside, equities research analysts clearly believe AtriCure is more favorable than DENTSPLY SIRONA.

Profitability

This table compares AtriCure and DENTSPLY SIRONA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AtriCure -19.56% -19.56% -11.91%
DENTSPLY SIRONA -20.57% 7.24% 5.02%

Volatility and Risk

AtriCure has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, DENTSPLY SIRONA has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Dividends

DENTSPLY SIRONA pays an annual dividend of $0.35 per share and has a dividend yield of 0.6%. AtriCure does not pay a dividend. DENTSPLY SIRONA pays out -10.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares AtriCure and DENTSPLY SIRONA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AtriCure $166.00 million 4.19 -$19.62 million ($1.01) -20.06
DENTSPLY SIRONA $3.84 billion 3.49 $825.00 million ($3.47) -16.84

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

Summary

DENTSPLY SIRONA beats AtriCure on 9 of the 15 factors compared between the two stocks.

AtriCure Company Profile

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

DENTSPLY SIRONA Company Profile

DENTSPLY SIRONA Inc. is a manufacturer of professional dental products and technologies. The Company develops, manufactures, and markets solutions offering, including dental and oral health products, as well as other consumable medical devices. It operates through two segments: Dental and Healthcare Consumables, and Technologies. The dental industry encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone. Its principal dental product categories are dental consumable products, dental laboratory products, dental specialty products and dental equipment. Additionally, its consumable medical device products are used for urological and surgical applications. These products are produced by the Company in the United States and internationally and are distributed throughout the world under various brand names, including ANKYLOS, AQUASIL ULTRA, ARTICADENT, ATLANTIS, CALIBRA, CAULK, CAVITRON, CELTRA, DELTON, DENTSPLY, DETREY and DYRACT.

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