IRIDEX (NASDAQ:IRIX – Get Free Report) and Insulet (NASDAQ:PODD – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Risk & Volatility
IRIDEX has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Insulet has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for IRIDEX and Insulet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IRIDEX | 1 | 0 | 1 | 0 | 2.00 |
| Insulet | 1 | 12 | 13 | 0 | 2.46 |
IRIDEX currently has a consensus target price of $3.00, indicating a potential upside of 321.41%. Insulet has a consensus target price of $186.68, indicating a potential upside of 24.72%. Given IRIDEX’s higher probable upside, equities research analysts clearly believe IRIDEX is more favorable than Insulet.
Earnings and Valuation
This table compares IRIDEX and Insulet”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IRIDEX | $52.67 million | 0.24 | -$4.44 million | ($0.20) | -3.56 |
| Insulet | $2.71 billion | 3.83 | $247.10 million | $5.35 | 27.98 |
Insulet has higher revenue and earnings than IRIDEX. IRIDEX is trading at a lower price-to-earnings ratio than Insulet, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares IRIDEX and Insulet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IRIDEX | -6.88% | N/A | -12.55% |
| Insulet | 12.29% | 29.29% | 13.31% |
Insider & Institutional Ownership
20.1% of IRIDEX shares are owned by institutional investors. 8.6% of IRIDEX shares are owned by company insiders. Comparatively, 0.4% of Insulet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Insulet beats IRIDEX on 11 of the 14 factors compared between the two stocks.
About IRIDEX
IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.
About Insulet
Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.
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