Beta Bionics (NASDAQ:BBNX) & Edwards Lifesciences (NYSE:EW) Critical Analysis

Beta Bionics (NASDAQ:BBNX) 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 earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Beta Bionics and Edwards Lifesciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	3	6	1	2.64
Edwards Lifesciences	0	8	16	3	2.81

Beta Bionics presently has a consensus price target of $19.70, suggesting a potential upside of 43.80%. Edwards Lifesciences has a consensus price target of $95.96, suggesting a potential upside of 11.94%. Given Beta Bionics’ higher possible upside, equities research analysts plainly believe Beta Bionics is more favorable than Edwards Lifesciences.

Risk & Volatility

Beta Bionics has a beta of 3.4, indicating that its share price is 240% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares Beta Bionics and Edwards Lifesciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$100.25 million	6.09	-$73.20 million	($1.51)	-9.07
Edwards Lifesciences	$6.07 billion	8.13	$1.07 billion	$1.88	45.59

Edwards Lifesciences has higher revenue and earnings than Beta Bionics. Beta Bionics 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 and Institutional Ownership

79.5% of Edwards Lifesciences shares are owned by institutional investors. 5.3% of Beta Bionics shares are owned by insiders. Comparatively, 0.3% of Edwards Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Beta Bionics and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-60.27%	-23.00%	-20.55%
Edwards Lifesciences	17.39%	15.19%	11.71%

Summary

Edwards Lifesciences beats Beta Bionics on 12 of the 15 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

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.