DexCom (DXCM) and T2 Biosystems (TTOO) Critical Analysis
DexCom (NASDAQ: DXCM) and T2 Biosystems (NASDAQ:TTOO) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
53.0% of T2 Biosystems shares are held by institutional investors. 1.7% of DexCom shares are held by insiders. Comparatively, 38.7% of T2 Biosystems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares DexCom and T2 Biosystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for DexCom and T2 Biosystems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DexCom presently has a consensus price target of $72.19, suggesting a potential upside of 54.13%. T2 Biosystems has a consensus price target of $6.83, suggesting a potential upside of 62.70%. Given T2 Biosystems’ higher probable upside, analysts plainly believe T2 Biosystems is more favorable than DexCom.
Valuation & Earnings
This table compares DexCom and T2 Biosystems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DexCom||$632.70 million||6.41||-$63.30 million||($0.77)||-60.83|
|T2 Biosystems||$3.89 million||33.22||-$49.26 million||($1.96)||-2.14|
T2 Biosystems has higher revenue, but lower earnings than DexCom. DexCom is trading at a lower price-to-earnings ratio than T2 Biosystems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DexCom has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, T2 Biosystems has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
DexCom beats T2 Biosystems on 7 of the 13 factors compared between the two stocks.
DexCom Company Profile
Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile. The Company is commercializing its fifth generation CGM system. The Company’s markets DexCom G4 PLATINUM under a Conformite Europeenne Marking (CE Mark), in the European Union, Australia, New Zealand and the countries in Asia and Latin America, and in the United States with approval from the United States Food and Drug Administration (FDA). The DexCom G4 PLATINUM with Share remote monitoring system uses a wireless connection between a patient’s receiver and an application on the patient’s iPhone, iPod touch, or iPad to transmit glucose information to applications on the mobile devices of designated recipients (followers).
T2 Biosystems Company Profile
T2 Biosystems, Inc. is an in vitro diagnostics company engaged in developing a technology platform offering an alternative to diagnostic methodologies. The Company’s T2 Magnetic Resonance platform (T2MR) enables detection of pathogens, biomarkers and other abnormalities in a range of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection as one colony forming unit per milliliter (CFU/mL). The Company’s initial development efforts target sepsis, hemostasis and Lyme disease. T2MR is a miniaturized, magnetic resonance-based approach that measures how water molecules react in the presence of magnetic fields. Its platform detects a range of targets, including molecular targets, such as deoxyribonucleic acid (DNA), immunodiagnostics, such as proteins, and a range of hemostasis measurements. The Company offers T2Dx Instrument (T2Dx) and the T2Candida Panel.
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