Boston Scientific (NYSE:BSX) versus Lonza Group (OTCMKTS:LZAGY) Critical Comparison

Boston Scientific (NYSE:BSX) and Lonza Group (OTCMKTS:LZAGY) are both large-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Analyst Ratings

This is a summary of recent ratings and target prices for Boston Scientific and Lonza Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	0	2	21	3	3.04
Lonza Group	0	0	0	2	4.00

Boston Scientific currently has a consensus price target of $117.50, indicating a potential upside of 10.21%. Given Boston Scientific’s higher possible upside, analysts clearly believe Boston Scientific is more favorable than Lonza Group.

Earnings & Valuation

This table compares Boston Scientific and Lonza Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Scientific	$16.75 billion	9.43	$1.85 billion	$1.68	63.46
Lonza Group	$7.47 billion	6.62	$722.43 million	N/A	N/A

Boston Scientific has higher revenue and earnings than Lonza Group.

Profitability

This table compares Boston Scientific and Lonza Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	13.55%	19.21%	10.62%
Lonza Group	N/A	N/A	N/A

Risk & Volatility

Boston Scientific has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Lonza Group has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

89.1% of Boston Scientific shares are held by institutional investors. Comparatively, 0.0% of Lonza Group shares are held by institutional investors. 0.5% of Boston Scientific shares are held by insiders. Comparatively, 0.1% of Lonza Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Boston Scientific beats Lonza Group on 11 of the 13 factors compared between the two stocks.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

About Lonza Group

Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Biologics, Small Molecules, Cell & Gene, and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. The Small Molecules segment operates as an integrated development and manufacturing service provider for small molecule drug substances and their intermediates. This segment also supports customers across various aspects of design, development, and manufacturing, including particle engineering and drug product packaging. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies; offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. This segment also provides Cocoon platform, a closed automated system for patient-scale cell therapy manufacturing; and specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. The Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.