Analyzing United-Guardian (NASDAQ:UG) and Insulet (NASDAQ:PODD)

Insulet (NASDAQ:PODD) and United-Guardian (NASDAQ:UG) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

23.2% of United-Guardian shares are owned by institutional investors. 0.4% of Insulet shares are owned by company insiders. Comparatively, 29.0% of United-Guardian shares are owned by company 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.

Valuation and Earnings

This table compares Insulet and United-Guardian”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insulet	$2.71 billion	4.09	$247.10 million	$4.30	37.16
United-Guardian	$10.55 million	3.07	$2.11 million	$0.52	13.58

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

Profitability

This table compares Insulet and United-Guardian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insulet	10.44%	26.87%	12.01%
United-Guardian	21.62%	21.40%	18.40%

Volatility & Risk

Insulet has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, United-Guardian has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Insulet and United-Guardian, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insulet	2	4	22	0	2.71
United-Guardian	0	1	0	0	2.00

Insulet presently has a consensus target price of $238.67, suggesting a potential upside of 49.36%. Given Insulet’s stronger consensus rating and higher probable upside, research analysts clearly believe Insulet is more favorable than United-Guardian.

Summary

Insulet beats United-Guardian on 10 of the 14 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 United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.