Sysmex (OTCMKTS:SSMXY) versus PROCEPT BioRobotics (NASDAQ:PRCT) Critical Comparison

Sysmex (OTCMKTS:SSMXY) and PROCEPT BioRobotics (NASDAQ:PRCT) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

This table compares Sysmex and PROCEPT BioRobotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysmex	8.86%	9.27%	6.63%
PROCEPT BioRobotics	-31.02%	-25.13%	-18.63%

Earnings & Valuation

This table compares Sysmex and PROCEPT BioRobotics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysmex	$3.34 billion	1.72	$357.79 million	$0.48	18.98
PROCEPT BioRobotics	$308.05 million	4.60	-$95.57 million	($1.71)	-14.70

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

Risk and Volatility

Sysmex has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, PROCEPT BioRobotics has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

89.5% of PROCEPT BioRobotics shares are owned by institutional investors. 17.4% of PROCEPT BioRobotics shares are owned 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 Sysmex and PROCEPT BioRobotics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysmex	0	2	1	0	2.33
PROCEPT BioRobotics	2	4	8	0	2.43

PROCEPT BioRobotics has a consensus target price of $40.82, suggesting a potential upside of 62.36%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, analysts plainly believe PROCEPT BioRobotics is more favorable than Sysmex.

Summary

Sysmex beats PROCEPT BioRobotics on 8 of the 14 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 PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.