Accelerate Diagnostics (NASDAQ: AXDX) and ResMed (NYSE:RMD) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Valuation & Earnings
This table compares Accelerate Diagnostics and ResMed’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Accelerate Diagnostics||$250,000.00||6,481.80||-$66.37 million||($1.20)||-24.37|
|ResMed||$2.07 billion||5.94||$342.28 million||$2.47||35.04|
ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Accelerate Diagnostics does not pay a dividend. ResMed pays out 56.7% of its earnings in the form of a dividend.
Institutional & Insider Ownership
47.9% of Accelerate Diagnostics shares are owned by institutional investors. Comparatively, 61.9% of ResMed shares are owned by institutional investors. 50.0% of Accelerate Diagnostics shares are owned by insiders. Comparatively, 1.8% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Accelerate Diagnostics and ResMed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Accelerate Diagnostics and ResMed, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Accelerate Diagnostics currently has a consensus target price of $33.00, indicating a potential upside of 12.82%. ResMed has a consensus target price of $65.83, indicating a potential downside of 23.93%. Given Accelerate Diagnostics’ stronger consensus rating and higher possible upside, analysts plainly believe Accelerate Diagnostics is more favorable than ResMed.
Risk and Volatility
Accelerate Diagnostics has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
ResMed beats Accelerate Diagnostics on 10 of the 16 factors compared between the two stocks.
Accelerate Diagnostics Company Profile
Accelerate Diagnostics, Inc. is an in vitro diagnostics company engaged in providing solutions that develop patient outcomes through the diagnosis of serious infections. The Company’s in vitro diagnostic platform, the Accelerate Pheno system utilizes genotypic technology to identify (ID), infectious pathogens and phenotypic technology to conduct antibiotic susceptibility testing (AST), which determines whether live bacterial or fungal cells are resistant or susceptible to a particular antibiotic. It detects and identifies pathogens directly from a single patient sample followed by antimicrobial susceptibility testing based on the identification results. The Accelerate PhenoTest BC Kit provides ID and AST results for patients suspected of bacteremia or fungemia, both life-threatening conditions with high morbidity and mortality risk. The Accelerate Pheno system features walk-away automation and consists of a fixed instrument and single-use test kit.
ResMed Company Profile
ResMed Inc. is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep. Its cloud-based software digital health applications, along with its devices, are designed to provide connected care to improve patient outcomes. The Company’s portfolio of products includes devices, diagnostic products, mask systems, headgear and other accessories, dental devices, portable oxygen concentrators (POCs) and cloud-based software informatics solutions. The Company produces Continuous Positive Airway Pressure (CPAP), Variable Positive Airway Pressure (VPAP) and AutoSet systems for the titration and treatment of SDB.
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