Critical Review: Cynosure (CYNO) versus Intuitive Surgical (ISRG)
Cynosure (NASDAQ: CYNO) and Intuitive Surgical (NASDAQ:ISRG) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Volatility and Risk
Cynosure has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Cynosure and Intuitive Surgical, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cynosure currently has a consensus target price of $58.33, indicating a potential downside of 11.58%. Intuitive Surgical has a consensus target price of $419.73, indicating a potential downside of 59.87%. Given Cynosure’s higher probable upside, analysts clearly believe Cynosure is more favorable than Intuitive Surgical.
Earnings & Valuation
This table compares Cynosure and Intuitive Surgical’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Intuitive Surgical||$2.87 billion||13.54||$1.08 billion||$20.88||50.09|
Intuitive Surgical has higher revenue and earnings than Cynosure. Intuitive Surgical is trading at a lower price-to-earnings ratio than Cynosure, indicating that it is currently the more affordable of the two stocks.
This table compares Cynosure and Intuitive Surgical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
94.2% of Intuitive Surgical shares are held by institutional investors. 2.9% of Cynosure shares are held by company insiders. Comparatively, 2.2% of Intuitive Surgical shares are held by company 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.
Intuitive Surgical beats Cynosure on 8 of the 11 factors compared between the two stocks.
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.
About Intuitive Surgical
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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