Critical Review: GE HealthCare Technologies (NASDAQ:GEHC) vs. Allurion Technologies (NYSE:ALUR)

Allurion Technologies (NYSE:ALUR) and GE HealthCare Technologies (NASDAQ:GEHC) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Allurion Technologies and GE HealthCare Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allurion Technologies	-199.96%	N/A	-77.13%
GE HealthCare Technologies	10.11%	21.35%	5.91%

Volatility and Risk

Allurion Technologies has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500. Comparatively, GE HealthCare Technologies has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

21.4% of Allurion Technologies shares are owned by institutional investors. Comparatively, 82.1% of GE HealthCare Technologies shares are owned by institutional investors. 8.1% of Allurion Technologies shares are owned by insiders. Comparatively, 0.4% of GE HealthCare Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Allurion Technologies and GE HealthCare Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allurion Technologies	$17.21 million	0.57	-$7.20 million	($10.56)	-0.08
GE HealthCare Technologies	$20.63 billion	1.63	$2.08 billion	$4.56	16.12

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

Analyst Ratings

This is a breakdown of recent ratings for Allurion Technologies and GE HealthCare Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allurion Technologies	1	1	1	0	2.00
GE HealthCare Technologies	1	6	8	0	2.47

Allurion Technologies presently has a consensus target price of $3.00, suggesting a potential upside of 275.00%. GE HealthCare Technologies has a consensus target price of $90.69, suggesting a potential upside of 23.37%. Given Allurion Technologies’ higher possible upside, research analysts plainly believe Allurion Technologies is more favorable than GE HealthCare Technologies.

Summary

GE HealthCare Technologies beats Allurion Technologies on 12 of the 14 factors compared between the two stocks.

About Allurion Technologies

Allurion Technologies Inc. focuses on ending obesity with a weight loss platform to treat people who are overweight. Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon), as well as offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite. Allurion Technologies Inc. is headquartered in Natick, Massachusetts.

About GE HealthCare Technologies

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, X-ray systems, and women’s health products. The Ultrasound segment provides medical devices and solutions for screening, diagnosis, treatment, and monitoring of certain diseases in clinical areas, such as radiology and primary care, women’s health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment provides medical devices, consumables, services, and digital solutions. Its portfolio includes patient monitoring solutions, anesthesia delivery and respiratory care products, electrocardiogram solutions, maternal infant care products, and consumables and services. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals that are administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes. It has an AI collaboration with Mass General Brigham. The company was formerly known as GE Healthcare Holding LLC and changed its name to GE HealthCare Technologies Inc. in December 2022. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.