Contrasting ABAXIS (ABAX) and Boston Scientific Corporation (BSX)
ABAXIS (NASDAQ: ABAX) and Boston Scientific Corporation (NYSE:BSX) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
This table compares ABAXIS and Boston Scientific Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boston Scientific Corporation||9.04%||23.62%||9.01%|
Risk & Volatility
ABAXIS has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Boston Scientific Corporation has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
Insider and Institutional Ownership
97.3% of ABAXIS shares are held by institutional investors. Comparatively, 90.3% of Boston Scientific Corporation shares are held by institutional investors. 4.3% of ABAXIS shares are held by insiders. Comparatively, 0.7% of Boston Scientific Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for ABAXIS and Boston Scientific Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boston Scientific Corporation||0||4||12||0||2.75|
ABAXIS presently has a consensus target price of $48.63, suggesting a potential upside of 3.37%. Boston Scientific Corporation has a consensus target price of $30.58, suggesting a potential upside of 2.99%. Given ABAXIS’s higher probable upside, equities research analysts clearly believe ABAXIS is more favorable than Boston Scientific Corporation.
Earnings & Valuation
This table compares ABAXIS and Boston Scientific Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ABAXIS||$227.78 million||4.69||$49.81 million||$1.41||33.36|
|Boston Scientific Corporation||$8.71 billion||4.68||$2.31 billion||$0.58||51.19|
Boston Scientific Corporation has higher revenue and earnings than ABAXIS. ABAXIS is trading at a lower price-to-earnings ratio than Boston Scientific Corporation, indicating that it is currently the more affordable of the two stocks.
ABAXIS pays an annual dividend of $0.56 per share and has a dividend yield of 1.2%. Boston Scientific Corporation does not pay a dividend. ABAXIS pays out 39.7% of its earnings in the form of a dividend.
Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.
About Boston Scientific Corporation
Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. The Company offers its products by seven businesses: Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology. It operates in three segments: Cardiovascular, Rhythm Management and MedSurg. Its Cardiovascular segment consists of Interventional Cardiology and Peripheral Interventions businesses. Rhythm Management consists of Cardiac Rhythm Management and Electrophysiology businesses. MedSurg consists of Endoscopy, Urology and Pelvic Health, and Neuromodulation businesses. Its Interventional Cardiology product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters and embolic protection devices and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures.
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