Zynex (NASDAQ:ZYXI) versus Insulet (NASDAQ:PODD) Head to Head Review

Insulet (NASDAQ:PODD) and Zynex (NASDAQ:ZYXI) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

Insulet has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Zynex has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Insulet and Zynex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insulet	0	2	16	0	2.89
Zynex	0	2	1	0	2.33

Insulet presently has a consensus target price of $343.06, indicating a potential upside of 7.88%. Zynex has a consensus target price of $4.90, indicating a potential upside of 237.93%. Given Zynex’s higher possible upside, analysts plainly believe Zynex is more favorable than Insulet.

Profitability

This table compares Insulet and Zynex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insulet	10.01%	23.78%	9.30%
Zynex	-19.79%	-78.54%	-16.70%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insulet	$2.07 billion	10.81	$418.30 million	$3.29	96.66
Zynex	$192.35 million	0.23	$2.99 million	($0.94)	-1.54

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

Institutional and Insider Ownership

29.7% of Zynex shares are owned by institutional investors. 0.4% of Insulet shares are owned by company insiders. Comparatively, 49.3% of Zynex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Insulet beats Zynex on 11 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 Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.