Analyzing Cynosure (CYNO) & Illumina (ILMN)

Cynosure (NASDAQ: CYNO) and Illumina (NASDAQ:ILMN) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cynosure and Illumina, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cynosure 0 3 1 0 2.25
Illumina 1 8 11 0 2.50

Cynosure currently has a consensus target price of $64.00, suggesting a potential downside of 3.03%. Illumina has a consensus target price of $213.71, suggesting a potential downside of 12.67%. Given Cynosure’s higher possible upside, equities analysts clearly believe Cynosure is more favorable than Illumina.

Earnings & Valuation

This table compares Cynosure and Illumina’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cynosure N/A N/A N/A $0.60 110.00
Illumina $2.40 billion 14.90 $462.64 million $5.30 46.17

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

Profitability

This table compares Cynosure and Illumina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cynosure 0.70% 0.75% 0.59%
Illumina 30.34% 19.42% 10.74%

Insider and Institutional Ownership

91.6% of Illumina shares are held by institutional investors. 2.9% of Cynosure shares are held by insiders. Comparatively, 0.9% of Illumina shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Illumina beats Cynosure on 8 of the 11 factors compared between the two stocks.

About Cynosure

Cynosure, Inc. develops, manufactures and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, reduce fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve women’s health. The Company also markets radiofrequency (RF), energy-sourced medical devices for surgical applications, such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. The Company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names. Its product portfolio includes single energy source systems, as well as workstations that incorporate two or more different types of lasers or light-based technologies.

About Illumina

Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.

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