Financial Contrast: PROCEPT BioRobotics (NASDAQ:PRCT) vs. Edwards Lifesciences (NYSE:EW)

Edwards Lifesciences (NYSE:EW) and PROCEPT BioRobotics (NASDAQ:PRCT) are both medical 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.

Earnings and Valuation

This table compares Edwards Lifesciences and PROCEPT BioRobotics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edwards Lifesciences	$5.44 billion	9.26	$4.17 billion	$2.32	37.43
PROCEPT BioRobotics	$224.50 million	8.07	-$91.41 million	($1.53)	-21.18

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

Volatility & Risk

Edwards Lifesciences has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, PROCEPT BioRobotics has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edwards Lifesciences	23.25%	14.70%	11.43%
PROCEPT BioRobotics	-28.20%	-21.72%	-16.28%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Edwards Lifesciences and PROCEPT BioRobotics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edwards Lifesciences	1	9	14	3	2.70
PROCEPT BioRobotics	1	2	9	1	2.77

Edwards Lifesciences currently has a consensus target price of $93.95, suggesting a potential upside of 8.21%. PROCEPT BioRobotics has a consensus target price of $53.40, suggesting a potential upside of 64.76%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, analysts clearly believe PROCEPT BioRobotics is more favorable than Edwards Lifesciences.

Insider and Institutional Ownership

79.5% of Edwards Lifesciences shares are held by institutional investors. Comparatively, 89.5% of PROCEPT BioRobotics shares are held by institutional investors. 1.3% of Edwards Lifesciences shares are held by insiders. Comparatively, 6.6% of PROCEPT BioRobotics 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

Edwards Lifesciences beats PROCEPT BioRobotics on 10 of the 15 factors compared between the two stocks.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

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.