Contrasting DexCom (NASDAQ:DXCM) and LENSAR (NASDAQ:LNSR)

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

Volatility & Risk

DexCom has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

97.8% of DexCom shares are held by institutional investors. Comparatively, 40.2% of LENSAR shares are held by institutional investors. 0.3% of DexCom shares are held by insiders. Comparatively, 66.0% of LENSAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares DexCom and LENSAR’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%
LENSAR	-87.12%	N/A	-73.64%

Valuation & Earnings

This table compares DexCom and LENSAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	5.14	$836.30 million	$2.10	29.64
LENSAR	$53.49 million	1.35	-$31.40 million	($4.39)	-1.38

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	1	3	18	2	2.88
LENSAR	1	0	1	0	2.00

DexCom presently has a consensus price target of $86.50, indicating a potential upside of 38.96%. Given DexCom’s stronger consensus rating and higher possible upside, analysts clearly believe DexCom is more favorable than LENSAR.

Summary

DexCom beats LENSAR on 14 of the 15 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 LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.