Head to Head Contrast: CONMED (CNMD) vs. AtriCure (ATRC)

CONMED (NASDAQ: CNMD) and AtriCure (NASDAQ:ATRC) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and Risk

CONMED has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, AtriCure has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares CONMED and AtriCure’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CONMED $763.52 million 1.92 $14.66 million $0.55 95.25
AtriCure $155.11 million 4.00 -$33.33 million ($1.02) -17.64

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

Profitability

This table compares CONMED and AtriCure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CONMED 1.99% 8.40% 3.65%
AtriCure -19.40% -20.28% -12.20%

Institutional & Insider Ownership

99.0% of CONMED shares are owned by institutional investors. Comparatively, 86.2% of AtriCure shares are owned by institutional investors. 2.6% of CONMED shares are owned by insiders. Comparatively, 10.0% of AtriCure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

CONMED pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. AtriCure does not pay a dividend. CONMED pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CONMED and AtriCure, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONMED 0 3 1 0 2.25
AtriCure 0 1 6 0 2.86

CONMED presently has a consensus target price of $50.67, indicating a potential downside of 3.29%. AtriCure has a consensus target price of $24.67, indicating a potential upside of 37.11%. Given AtriCure’s stronger consensus rating and higher probable upside, analysts clearly believe AtriCure is more favorable than CONMED.

Summary

CONMED beats AtriCure on 9 of the 15 factors compared between the two stocks.

About CONMED

CONMED Corporation is a medical technology company. The Company is engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company provides surgical devices and equipment for minimally invasive procedures. The Company’s products are used by surgeons and physicians in a range of specialties, including orthopedics, general surgery, gynecology, neurosurgery and gastroenterology. The Company’s product lines consist of orthopedic surgery, general surgery and surgical visualization. As of December 31, 2016, the Company’s products are distributed domestically directly to over 6,000 hospitals, surgery centers and other healthcare institutions, as well as through medical specialty distributors. The Company’s orthopedic surgery product lines include sports medicine, powered surgical instruments, and sports biologics and tissue. These products are marketed under a range of brands, including Hall, CONMED Linvatec, Concept and Shutt.

About AtriCure

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

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