ABIOMED (NASDAQ:ABMD) & Boston Scientific (NASDAQ:BSX) Critical Comparison

Boston Scientific (NYSE:BSX) and ABIOMED (NASDAQ:ABMD) are both large-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

90.1% of Boston Scientific shares are held by institutional investors. Comparatively, 94.4% of ABIOMED shares are held by institutional investors. 0.7% of Boston Scientific shares are held by company insiders. Comparatively, 3.4% of ABIOMED shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Boston Scientific and ABIOMED’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boston Scientific 39.75% 18.24% 7.64%
ABIOMED 24.14% 18.51% 16.31%

Volatility & Risk

Boston Scientific has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Boston Scientific and ABIOMED’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boston Scientific $10.74 billion 4.58 $4.70 billion $1.58 22.22
ABIOMED $840.88 million 12.92 $203.01 million $4.74 50.96

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

Analyst Ratings

This is a summary of current recommendations and price targets for Boston Scientific and ABIOMED, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Scientific 0 2 19 3 3.04
ABIOMED 1 4 3 0 2.25

Boston Scientific currently has a consensus target price of $44.65, suggesting a potential upside of 27.18%. ABIOMED has a consensus target price of $193.00, suggesting a potential downside of 20.10%. Given Boston Scientific’s stronger consensus rating and higher probable upside, research analysts clearly believe Boston Scientific is more favorable than ABIOMED.

Summary

Boston Scientific beats ABIOMED on 8 of the 15 factors compared between the two stocks.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, and micro and drainage catheters to treat cancer. The company was founded in 1979 and is headquartered in Marlborough, Massachusetts.

About ABIOMED

ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.

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