Comparing CVRx (NASDAQ:CVRX) & DexCom (NASDAQ:DXCM)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	5.53	$836.30 million	$2.10	31.88
CVRx	$56.65 million	4.04	-$53.31 million	($2.05)	-4.24

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

Institutional & Insider Ownership

97.8% of DexCom shares are held by institutional investors. Comparatively, 75.3% of CVRx shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Comparatively, 13.9% of CVRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DexCom and CVRx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	1	4	17	2	2.83
CVRx	2	0	3	2	2.71

DexCom presently has a consensus target price of $85.50, suggesting a potential upside of 27.71%. CVRx has a consensus target price of $11.20, suggesting a potential upside of 28.88%. Given CVRx’s higher probable upside, analysts clearly believe CVRx is more favorable than DexCom.

Volatility & Risk

DexCom has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, CVRx has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DexCom	17.94%	32.12%	11.86%
CVRx	-94.10%	-99.32%	-45.83%

Summary

DexCom beats CVRx on 12 of the 14 factors compared between the two stocks.

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.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.