Critical Contrast: Senseonics (NYSE:SENS) and Keysight Technologies (NYSE:KEYS)

Senseonics (NYSE:SENS – Get Rating) and Keysight Technologies (NYSE:KEYS – Get Rating) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

26.8% of Senseonics shares are held by institutional investors. Comparatively, 84.9% of Keysight Technologies shares are held by institutional investors. 5.6% of Senseonics shares are held by insiders. Comparatively, 0.5% of Keysight Technologies 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.

Analyst Ratings

This is a breakdown of recent recommendations for Senseonics and Keysight Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senseonics	0	0	0	0	N/A
Keysight Technologies	0	2	10	0	2.83

Keysight Technologies has a consensus price target of $202.17, suggesting a potential upside of 37.57%. Given Keysight Technologies’ higher probable upside, analysts clearly believe Keysight Technologies is more favorable than Senseonics.

Volatility & Risk

Senseonics has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Earnings & Valuation

This table compares Senseonics and Keysight Technologies’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senseonics	$13.68 million	53.51	-$302.47 million	($0.83)	-1.90
Keysight Technologies	$4.94 billion	5.41	$894.00 million	$5.11	28.76

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

Profitability

This table compares Senseonics and Keysight Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Senseonics	-2,211.87%	N/A	-24.95%
Keysight Technologies	18.98%	29.55%	14.19%

Summary

Keysight Technologies beats Senseonics on 11 of the 13 factors compared between the two stocks.

About Senseonics (Get Rating)

Senseonics Holdings, Inc., a medical technology company, develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes in the United States, Europe, the Middle East, and Africa. The company's products include Eversense and Eversense XL, which are implantable CGM systems to measure glucose levels in people with diabetes through an under-the-skin sensor, a removable and rechargeable smart transmitter, and a convenient app for real-time diabetes monitoring and management for a period of up to six months. It serves healthcare providers and patients through a network of distributors and strategic fulfillment partners. The company has a collaboration agreement with the University Hospitals Accountable Care Organization. Senseonics Holdings, Inc. was founded in 1996 and is headquartered in Germantown, Maryland.

About Keysight Technologies (Get Rating)

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment. The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software. The company offers product support, technical support, and training and consulting services. It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.