Contrasting DexCom (NASDAQ:DXCM) and Orthofix Medical (NASDAQ:OFIX)

Orthofix Medical (NASDAQ:OFIX) and DexCom (NASDAQ:DXCM) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Orthofix Medical and DexCom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orthofix Medical	1	1	3	0	2.40
DexCom	1	3	21	2	2.89

Orthofix Medical presently has a consensus target price of $16.00, suggesting a potential upside of 37.58%. DexCom has a consensus target price of $84.88, suggesting a potential upside of 13.23%. Given Orthofix Medical’s higher probable upside, analysts clearly believe Orthofix Medical is more favorable than DexCom.

Valuation and Earnings

This table compares Orthofix Medical and DexCom”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orthofix Medical	$822.31 million	0.57	-$92.19 million	($1.51)	-7.70
DexCom	$4.66 billion	6.20	$836.30 million	$2.34	32.03

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

Profitability

This table compares Orthofix Medical and DexCom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orthofix Medical	-7.27%	-13.44%	-7.05%
DexCom	19.31%	33.33%	13.19%

Institutional & Insider Ownership

89.8% of Orthofix Medical shares are held by institutional investors. Comparatively, 97.8% of DexCom shares are held by institutional investors. 2.7% of Orthofix Medical shares are held by insiders. Comparatively, 0.3% of DexCom shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Orthofix Medical has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Summary

DexCom beats Orthofix Medical on 13 of the 15 factors compared between the two stocks.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

About DexCom

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.