Analyzing Accelerate Diagnostics (AXDX) & Intuitive Surgical (ISRG)

Accelerate Diagnostics (NASDAQ: AXDX) and Intuitive Surgical (NASDAQ:ISRG) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Institutional and Insider Ownership

47.8% of Accelerate Diagnostics shares are owned by institutional investors. Comparatively, 34.8% of Intuitive Surgical shares are owned by institutional investors. 50.0% of Accelerate Diagnostics shares are owned by insiders. Comparatively, 2.2% of Intuitive Surgical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accelerate Diagnostics and Intuitive Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accelerate Diagnostics -3,085.36% -60.99% -57.85%
Intuitive Surgical 21.09% 19.93% 17.02%

Analyst Ratings

This is a breakdown of current recommendations for Accelerate Diagnostics and Intuitive Surgical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accelerate Diagnostics 0 1 1 0 2.50
Intuitive Surgical 0 5 12 0 2.71

Accelerate Diagnostics presently has a consensus price target of $33.00, suggesting a potential upside of 38.08%. Intuitive Surgical has a consensus price target of $406.13, suggesting a potential upside of 3.37%. Given Accelerate Diagnostics’ higher possible upside, research analysts plainly believe Accelerate Diagnostics is more favorable than Intuitive Surgical.

Risk and Volatility

Accelerate Diagnostics has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares Accelerate Diagnostics and Intuitive Surgical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accelerate Diagnostics $250,000.00 5,296.24 -$66.37 million ($1.20) -19.92
Intuitive Surgical $3.13 billion 14.10 $660.00 million $5.68 69.17

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

Summary

Intuitive Surgical beats Accelerate Diagnostics on 9 of the 14 factors compared between the two stocks.

About Accelerate Diagnostics

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.

About Intuitive Surgical

Intuitive Surgical, Inc. (Intuitive) designs, manufactures and markets da Vinci Surgical Systems, and related instruments and accessories. The Company’s da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a vision system. The da Vinci Surgical System translates a surgeon’s hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports. The da Vinci Surgical System provides its operating surgeons with control, range of motion, tissue manipulation capability and three-dimensional (3-D), high-definition (HD) vision. Intuitive has four generations of da Vinci Surgical System: the da Vinci Xi Surgical System, the da Vinci Si Surgical System, the da Vinci S Surgical System and the standard da Vinci Surgical System. The Company’s instruments and accessories include EndoWrist Instruments and da Vinci Single-Site.

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