Head-To-Head Analysis: Intuitive Surgical (ISRG) & GenMark Diagnostics (GNMK)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Intuitive Surgical and GenMark Diagnostics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuitive Surgical 0 5 12 0 2.71
GenMark Diagnostics 0 1 5 0 2.83

Intuitive Surgical presently has a consensus price target of $406.13, indicating a potential upside of 3.37%. GenMark Diagnostics has a consensus price target of $11.80, indicating a potential upside of 144.81%. Given GenMark Diagnostics’ stronger consensus rating and higher probable upside, analysts plainly believe GenMark Diagnostics is more favorable than Intuitive Surgical.

Volatility and Risk

Intuitive Surgical has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, GenMark Diagnostics has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Intuitive Surgical 21.09% 19.93% 17.02%
GenMark Diagnostics -116.76% -100.33% -57.22%

Valuation and Earnings

This table compares Intuitive Surgical and GenMark Diagnostics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intuitive Surgical $3.13 billion 14.10 $660.00 million $5.68 69.17
GenMark Diagnostics $49.27 million 5.36 -$50.60 million ($1.22) -3.95

Intuitive Surgical has higher revenue and earnings than GenMark Diagnostics. GenMark 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.

Insider and Institutional Ownership

34.8% of Intuitive Surgical shares are held by institutional investors. 2.2% of Intuitive Surgical shares are held by insiders. Comparatively, 7.5% of GenMark Diagnostics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Intuitive Surgical beats GenMark Diagnostics on 10 of the 14 factors compared between the two stocks.

Intuitive Surgical Company Profile

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.

GenMark Diagnostics Company Profile

GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.

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