Head-To-Head Comparison: Orthofix Medical (NASDAQ:OFIX) and DexCom (NASDAQ:DXCM)

DexCom (NASDAQ:DXCM) and Orthofix Medical (NASDAQ:OFIX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Insider and Institutional Ownership

97.8% of DexCom shares are owned by institutional investors. Comparatively, 89.8% of Orthofix Medical shares are owned by institutional investors. 0.3% of DexCom shares are owned by company insiders. Comparatively, 2.7% of Orthofix Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	1	3	21	2	2.89
Orthofix Medical	1	1	3	0	2.40

DexCom presently has a consensus price target of $84.88, indicating a potential upside of 19.13%. Orthofix Medical has a consensus price target of $15.50, indicating a potential upside of 55.94%. Given Orthofix Medical’s higher probable upside, analysts plainly believe Orthofix Medical is more favorable than DexCom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DexCom	19.31%	33.33%	13.19%
Orthofix Medical	-7.27%	-13.44%	-7.05%

Risk and Volatility

DexCom has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Orthofix Medical has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares DexCom and Orthofix Medical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$4.66 billion	5.90	$836.30 million	$2.34	30.45
Orthofix Medical	$822.31 million	0.49	-$92.19 million	($1.51)	-6.58

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

Summary

DexCom beats Orthofix Medical on 13 of the 15 factors compared between the two stocks.

About DexCom

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.