Sysmex (OTCMKTS:SSMXY) vs. DexCom (NASDAQ:DXCM) Head to Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sysmex	8.86%	9.27%	6.63%
DexCom	17.94%	32.12%	11.86%

Analyst Ratings

This is a summary of recent ratings and price targets for Sysmex and DexCom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysmex	0	2	1	0	2.33
DexCom	1	3	18	2	2.88

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

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares Sysmex and DexCom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysmex	$3.34 billion	1.60	$357.79 million	$0.48	17.65
DexCom	$4.66 billion	5.14	$836.30 million	$2.10	29.64

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

Risk & Volatility

Sysmex has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, DexCom has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

DexCom beats Sysmex on 15 of the 15 factors compared between the two stocks.

About Sysmex

Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.

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.