ConforMIS (NASDAQ: CFMS) and St Jude Medical (NYSE:STJ) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
38.6% of ConforMIS shares are held by institutional investors. Comparatively, 82.7% of St Jude Medical shares are held by institutional investors. 9.6% of ConforMIS shares are held by company insiders. Comparatively, 4.8% of St Jude Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares ConforMIS and St Jude Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|St Jude Medical||14.14%||19.40%||6.75%|
St Jude Medical pays an annual dividend of $1.24 per share and has a dividend yield of 1.5%. ConforMIS does not pay a dividend. St Jude Medical pays out 54.4% of its earnings in the form of a dividend. St Jude Medical has increased its dividend for 6 consecutive years.
This is a summary of recent ratings and price targets for ConforMIS and St Jude Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|St Jude Medical||0||4||1||0||2.20|
ConforMIS presently has a consensus target price of $8.25, suggesting a potential upside of 137.75%. St Jude Medical has a consensus target price of $77.25, suggesting a potential downside of 4.42%. Given ConforMIS’s stronger consensus rating and higher possible upside, research analysts plainly believe ConforMIS is more favorable than St Jude Medical.
Valuation and Earnings
This table compares ConforMIS and St Jude Medical’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ConforMIS||$79.26 million||1.96||-$54.78 million||($1.36)||-2.55|
|St Jude Medical||N/A||N/A||N/A||$2.28||35.45|
St Jude Medical has higher revenue, but lower earnings than ConforMIS. ConforMIS is trading at a lower price-to-earnings ratio than St Jude Medical, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ConforMIS has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, St Jude Medical has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
ConforMIS Company Profile
ConforMIS, Inc. is a medical technology company. The Company uses its iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants, which are individually sized and shaped, to fit each patient’s anatomy. The Company’s iFit technology platform is applicable to various joints. It offers a line of customized knee implants designed to restore the natural shape of a patient’s knee. It offers iTotal CR, which is a total knee replacement implant. Its iFit technology platform consists of three elements, including iFit Design, its algorithms and computer software that is used to design customized implants and associated single-use patient-specific instrumentation referred to as iJigs, based on computed tomography scans of the patient and to prepare a surgical plan customized for the patient (iView); iFit Printing, which is a three-dimensional printing technology used to manufacture iJigs, and iFit Just-in-Time manufacturing and delivery capabilities.
St Jude Medical Company Profile
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and neurostimulation devices for the management of chronic pain and movement disorders. The Company’s product categories include tachycardia implantable cardioverter defibrillator systems; atrial fibrillation products (electrophysiology introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems); bradycardia pacemaker systems; vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography imaging products, vascular plugs, heart failure monitoring devices and other vascular accessories); structural heart products (heart valve replacement and repair products and structural heart defect devices); neuromodulation products, and Thoratec products.
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