Envista (NYSE:NVST) vs. Insulet (NASDAQ:PODD) Critical Analysis

Insulet (NASDAQ:PODD) and Envista (NYSE:NVST) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Insulet and Envista, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insulet	0	2	21	1	2.96
Envista	2	8	4	1	2.27

Insulet currently has a consensus target price of $379.65, indicating a potential upside of 24.68%. Envista has a consensus target price of $21.33, indicating a potential upside of 5.58%. Given Insulet’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Insulet is more favorable than Envista.

Risk and Volatility

Insulet has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Envista has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Insulet and Envista’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insulet	9.76%	24.36%	10.02%
Envista	0.58%	5.90%	3.25%

Valuation & Earnings

This table compares Insulet and Envista”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insulet	$2.07 billion	10.34	$418.30 million	$3.45	88.26
Envista	$2.51 billion	1.32	-$1.12 billion	$0.09	224.50

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

Summary

Insulet beats Envista on 10 of the 12 factors compared between the two stocks.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

About Envista

Envista Holdings Corporation, together with its subsidiaries, develops, manufactures, markets, and sells dental products in the United States, China, and internationally. The company operates in two segments, Specialty Products & Technologies, and Equipment & Consumables. The Specialty Products & Technologies segment offers dental implant systems, guided surgery systems, biomaterials, and prefabricated and custom-built prosthetics to oral surgeons, prosthodontists and periodontists, and general dentist; and brackets and wires, tubes and bands, archwires, clear aligners, digital orthodontic treatments, retainers, and other orthodontic laboratory products. This segment also provides software packages, which include DTX Studio Implant; DTX Studio Lab; and DTX Studio Clinic, a software package offered with its imaging products. It offers its products under the Nobel Biocare, Alpha-Bio Tec, Implant Direct, Nobel Procera, Ormco, Spark, Orascoptic, Damon, Insignia, AOA brands. The Equipment & Consumables segment provides dental equipment and supplies, including digital imaging systems, software, and other visualization/magnification systems; endodontic systems and related products; restorative materials, rotary burs, impression materials, bonding agents, and cements; and infection prevention products. This segment offers its products under the Dexis, DTX Studio, Kerr, Metrex, Total Care, Pentron, Optibond, Harmonize, Sonicfill, Sybron Endo, and CaviWipes to dental offices, clinics, and hospitals. Envista Holdings Corporation was incorporated in 2018 and is headquartered in Brea, California.