Head-To-Head Contrast: Sight Sciences (NASDAQ:SGHT) vs. Masimo (NASDAQ:MASI)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sight Sciences and Masimo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sight Sciences	1	3	4	0	2.38
Masimo	1	3	4	0	2.38

Sight Sciences currently has a consensus price target of $8.30, suggesting a potential upside of 15.60%. Masimo has a consensus price target of $189.40, suggesting a potential upside of 36.34%. Given Masimo’s higher probable upside, analysts clearly believe Masimo is more favorable than Sight Sciences.

Institutional & Insider Ownership

55.5% of Sight Sciences shares are held by institutional investors. Comparatively, 86.0% of Masimo shares are held by institutional investors. 30.9% of Sight Sciences shares are held by insiders. Comparatively, 9.7% of Masimo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Sight Sciences has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500. Comparatively, Masimo has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sight Sciences and Masimo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sight Sciences	$79.87 million	4.75	-$51.51 million	($0.90)	-7.98
Masimo	$2.09 billion	3.56	-$304.90 million	($10.54)	-13.18

Sight Sciences has higher earnings, but lower revenue than Masimo. Masimo is trading at a lower price-to-earnings ratio than Sight Sciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sight Sciences and Masimo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sight Sciences	-60.63%	-61.59%	-36.11%
Masimo	-33.20%	33.04%	13.92%

About Sight Sciences

Sight Sciences, Inc., an ophthalmic medical device company, engages in the development and commercialization of surgical and nonsurgical technologies for the treatment of eye diseases. It operates through two segments, Surgical Glaucoma and Dry Eye. The company's products include OMNI Surgical System, an implant-free glaucoma surgery technology indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and SION Surgical Instrument, a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. It also offers TearCare System, a wearable eyelid technology for adult patients with evaporative dry eye disease due to meibomian gland dysfunction, as well as related components. It offers its products through sales representatives and distributors to hospitals, medical centers, and eyecare professionals in the United States. Sight Sciences, Inc. was incorporated in 2010 and is headquartered in Menlo Park, California.

About Masimo

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.