Edwards Lifesciences (NYSE:EW) and PROCEPT BioRobotics (NASDAQ:PRCT) Financial Comparison

PROCEPT BioRobotics (NASDAQ:PRCT) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Risk and Volatility

PROCEPT BioRobotics has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares PROCEPT BioRobotics and Edwards Lifesciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$224.50 million	8.14	-$91.41 million	($1.53)	-21.39
Edwards Lifesciences	$5.44 billion	9.20	$4.17 billion	$2.32	37.16

Edwards Lifesciences has higher revenue and earnings than PROCEPT BioRobotics. PROCEPT BioRobotics 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

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 79.5% of Edwards Lifesciences shares are held by institutional investors. 17.4% of PROCEPT BioRobotics shares are held by insiders. Comparatively, 0.3% of Edwards Lifesciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for PROCEPT BioRobotics and Edwards Lifesciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	1	2	9	1	2.77
Edwards Lifesciences	1	9	14	3	2.70

PROCEPT BioRobotics currently has a consensus target price of $53.40, suggesting a potential upside of 63.20%. Edwards Lifesciences has a consensus target price of $93.95, suggesting a potential upside of 8.99%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, analysts plainly believe PROCEPT BioRobotics is more favorable than Edwards Lifesciences.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-28.20%	-21.72%	-16.28%
Edwards Lifesciences	23.25%	14.70%	11.43%

Summary

Edwards Lifesciences beats PROCEPT BioRobotics on 10 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.