Critical Analysis: DexCom (NASDAQ:DXCM) versus Nuwellis (NASDAQ:NUWE)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nuwellis and DexCom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuwellis	1	0	0	0	1.00
DexCom	1	3	21	2	2.89

DexCom has a consensus target price of $88.12, indicating a potential upside of 5.60%. Given DexCom’s stronger consensus rating and higher probable upside, analysts clearly believe DexCom is more favorable than Nuwellis.

Earnings & Valuation

This table compares Nuwellis and DexCom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuwellis	$8.27 million	0.02	-$17.52 million	($2,238.46)	-0.00
DexCom	$4.66 billion	6.91	$836.30 million	$2.53	32.98

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

Institutional and Insider Ownership

3.1% of Nuwellis shares are held by institutional investors. Comparatively, 97.8% of DexCom shares are held by institutional investors. 1.6% of Nuwellis shares are held by company insiders. Comparatively, 0.3% of DexCom shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nuwellis	-214.90%	-32,351.83%	-249.08%
DexCom	20.12%	35.34%	14.55%

Volatility and Risk

Nuwellis has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Summary

DexCom beats Nuwellis on 14 of the 15 factors compared between the two stocks.

About Nuwellis

Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.

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.