Critical Contrast: DexCom (DXCM) versus Transenterix (TRXC)

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

Analyst Recommendations

This is a summary of current ratings for DexCom and Transenterix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DexCom 0 7 13 0 2.65
Transenterix 0 1 0 0 2.00

DexCom presently has a consensus target price of $72.19, indicating a potential upside of 52.95%. Transenterix has a consensus target price of $0.70, indicating a potential downside of 52.38%. Given DexCom’s stronger consensus rating and higher possible upside, equities analysts plainly believe DexCom is more favorable than Transenterix.

Profitability

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

Net Margins Return on Equity Return on Assets
DexCom -10.27% -27.90% -16.20%
Transenterix -928.85% -49.16% -33.51%

Earnings & Valuation

This table compares DexCom and Transenterix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DexCom $632.70 million 6.46 -$63.30 million ($0.77) -61.30
Transenterix $5.05 million 43.24 -$47.82 million N/A N/A

Transenterix has higher revenue, but lower earnings than DexCom.

Summary

DexCom beats Transenterix on 7 of the 9 factors compared between the two stocks.

About DexCom

Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile. The Company is commercializing its fifth generation CGM system. The Company’s markets DexCom G4 PLATINUM under a Conformite Europeenne Marking (CE Mark), in the European Union, Australia, New Zealand and the countries in Asia and Latin America, and in the United States with approval from the United States Food and Drug Administration (FDA). The DexCom G4 PLATINUM with Share remote monitoring system uses a wireless connection between a patient’s receiver and an application on the patient’s iPhone, iPod touch, or iPad to transmit glucose information to applications on the mobile devices of designated recipients (followers).

About Transenterix

TransEnterix, Inc. is a medical device company. The Company is focused on the development and commercialization of ALF-X Surgical Robotic System (the ALF-X System), and SurgiBot System. The Company’s ALF-X System is a multi-port robotic surgery system, which allows multiple robotic arms to control instruments and a camera. The system features advanced technology to enable surgeons with haptic feedback and the ability to move the camera through eye movement. The system replicates laparoscopic motion and integrates three-dimensional high definition (3DHD) vision technology. The ALF-X System also offers responsible economics to hospitals by offering robotic technology with reusable instruments. The SurgiBot System is designed as a single-incision, patient-side robotic-assisted surgery system. The Company also develops and manufactures laparoscopic surgical instruments that are used in abdominal surgery, such as scissors, graspers, clip appliers, and suction and irrigation instruments.

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