Comparing Edwards Lifesciences (EW) & IRIDEX (IRIX)

IRIDEX (NASDAQ: IRIX) and Edwards Lifesciences (NYSE:EW) are both advanced medical equipment & technology – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Risk and Volatility

IRIDEX has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Valuation and Earnings

This table compares IRIDEX and Edwards Lifesciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IRIDEX $46.16 million 1.87 -$11.71 million ($1.70) -4.39
Edwards Lifesciences $2.96 billion 8.85 $569.50 million $3.44 36.02

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

Insider & Institutional Ownership

49.3% of IRIDEX shares are owned by institutional investors. Comparatively, 81.6% of Edwards Lifesciences shares are owned by institutional investors. 5.0% of IRIDEX shares are owned by company insiders. Comparatively, 2.1% of Edwards Lifesciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares IRIDEX and Edwards Lifesciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIDEX -42.22% -23.21% -19.03%
Edwards Lifesciences 22.47% 27.22% 15.67%

Analyst Ratings

This is a summary of recent ratings and recommmendations for IRIDEX and Edwards Lifesciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIDEX 0 0 1 0 3.00
Edwards Lifesciences 0 4 14 1 2.84

IRIDEX currently has a consensus price target of $13.00, indicating a potential upside of 74.26%. Edwards Lifesciences has a consensus price target of $129.87, indicating a potential upside of 4.81%. Given IRIDEX’s stronger consensus rating and higher possible upside, research analysts clearly believe IRIDEX is more favorable than Edwards Lifesciences.

Summary

Edwards Lifesciences beats IRIDEX on 11 of the 15 factors compared between the two stocks.

IRIDEX Company Profile

IRIDEX Corporation is a provider of therapeutic based laser consoles, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. The Company operates through ophthalmology segment. Its ophthalmology products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes, and are used in the treatment of serious eye diseases, including the over three causes of irreversible blindness, such as diabetic retinopathy, glaucoma and age-related macular degeneration (AMD). In addition, the Company’s ophthalmology products are often used in vitrectomy procedures (used to treat proliferative diabetic retinopathy, macular holes, retinal tears and detachments), which are generally performed in the operating room and require a consumable single use intraocular laser probe (EndoProbe) to deliver light to the back of the eye together with other instrumentation.

Edwards Lifesciences Company Profile

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

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