Comparing Illumina (ILMN) and Cynosure (CYNO)

Illumina (NASDAQ: ILMN) and Cynosure (NASDAQ:CYNO) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Illumina and Cynosure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Illumina $2.40 billion 13.89 $462.64 million $5.30 43.05
Cynosure N/A N/A N/A $0.60 N/A

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Illumina and Cynosure, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Illumina 1 8 12 0 2.52
Cynosure 0 3 1 0 2.25

Illumina presently has a consensus target price of $206.00, suggesting a potential downside of 9.72%. Cynosure has a consensus target price of $58.00, suggesting a potential upside of Infinity. Given Cynosure’s higher probable upside, analysts plainly believe Cynosure is more favorable than Illumina.

Profitability

This table compares Illumina and Cynosure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Illumina 30.34% 19.42% 10.74%
Cynosure 0.70% 0.75% 0.59%

Institutional and Insider Ownership

91.6% of Illumina shares are owned by institutional investors. 0.9% of Illumina shares are owned by company insiders. Comparatively, 2.9% of Cynosure shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Illumina beats Cynosure on 8 of the 11 factors compared between the two stocks.

About Illumina

Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.

About Cynosure

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.

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