Financial Review: Cardinal Health (NYSE:CAH) & Endologix (OTCMKTS:ELGXQ)

Endologix (OTCMKTS:ELGXQ) and Cardinal Health (NYSE:CAH) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Endologix and Cardinal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endologix	0	0	0	0	0.00
Cardinal Health	0	2	14	0	2.88

Cardinal Health has a consensus target price of $213.40, suggesting a potential upside of 5.42%. Given Cardinal Health’s stronger consensus rating and higher possible upside, analysts plainly believe Cardinal Health is more favorable than Endologix.

Institutional & Insider Ownership

87.2% of Cardinal Health shares are held by institutional investors. 1.3% of Endologix shares are held by insiders. Comparatively, 0.1% of Cardinal Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Endologix and Cardinal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endologix	N/A	N/A	N/A
Cardinal Health	0.68%	-84.37%	4.19%

Earnings and Valuation

This table compares Endologix and Cardinal Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endologix	N/A	N/A	N/A	N/A	N/A
Cardinal Health	$222.58 billion	0.22	$1.56 billion	$6.63	30.53

Cardinal Health has higher revenue and earnings than Endologix.

Summary

Cardinal Health beats Endologix on 7 of the 9 factors compared between the two stocks.

About Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California. On July 5, 2020, Endologix, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. It is in joint administration with TriVascular Sales LLC.

About Cardinal Health

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.