Analyzing Masimo Corporation (MASI) and Apollo Endosurgery (APEN)

Masimo Corporation (NASDAQ: MASI) and Apollo Endosurgery (NASDAQ:APEN) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Masimo Corporation and Apollo Endosurgery, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masimo Corporation 0 3 4 0 2.57
Apollo Endosurgery 0 0 3 0 3.00

Masimo Corporation presently has a consensus price target of $97.00, indicating a potential upside of 14.01%. Apollo Endosurgery has a consensus price target of $11.00, indicating a potential upside of 108.73%. Given Apollo Endosurgery’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Endosurgery is more favorable than Masimo Corporation.

Volatility and Risk

Masimo Corporation has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Apollo Endosurgery has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Insider & Institutional Ownership

83.2% of Masimo Corporation shares are owned by institutional investors. Comparatively, 8.9% of Apollo Endosurgery shares are owned by institutional investors. 16.6% of Masimo Corporation shares are owned by company insiders. Comparatively, 74.2% of Apollo Endosurgery shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Masimo Corporation and Apollo Endosurgery’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Masimo Corporation $730.06 million 6.05 $182.11 million $6.14 13.86
Apollo Endosurgery $63.01 million 1.44 -$10.53 million N/A N/A

Masimo Corporation has higher revenue and earnings than Apollo Endosurgery.

Profitability

This table compares Masimo Corporation and Apollo Endosurgery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masimo Corporation 45.90% 23.45% 16.22%
Apollo Endosurgery -81.59% -142.98% -54.80%

Summary

Masimo Corporation beats Apollo Endosurgery on 9 of the 12 factors compared between the two stocks.

About Masimo Corporation

Masimo Corporation is a medical technology company that develops, manufactures and markets a range of non-invasive patient monitoring technologies. The Company’s business is Measure-through Motion and Low Perfusion pulse oximetry monitoring, known as Masimo Signal Extraction Technology (SET) pulse oximetry. Its product offerings include non-invasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical, brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring. In addition, the Company has developed the Root patient monitoring and connectivity platform, the Radical-7 bedside and portable patient monitor, and the Radius-7 wearable wireless patient monitor. It offers Patient SafetyNet remote patient surveillance monitoring system, which allows patients to be monitored through a personal computer-based monitor or by care providers through their pagers, voice-over-Internet Protocol (IP) phones or smartphones.

About Apollo Endosurgery

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.

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