Reviewing Axonics (NASDAQ:AXNX) & DexCom (NASDAQ:DXCM)

Axonics (NASDAQ:AXNXGet Rating) and DexCom (NASDAQ:DXCMGet Rating) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility and Risk

Axonics has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axonics $273.70 million 10.61 -$59.70 million ($1.30) -44.72
DexCom $2.91 billion 16.51 $341.20 million $0.81 152.57

DexCom has higher revenue and earnings than Axonics. Axonics 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

97.5% of Axonics shares are held by institutional investors. Comparatively, 94.0% of DexCom shares are held by institutional investors. 2.3% of Axonics shares are held by company insiders. Comparatively, 0.4% of DexCom shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Axonics -21.81% -11.82% -10.24%
DexCom 11.73% 16.66% 6.81%

Analyst Ratings

This is a summary of recent ratings for Axonics and DexCom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axonics 0 1 7 0 2.88
DexCom 0 2 10 1 2.92

Axonics currently has a consensus target price of $78.63, suggesting a potential upside of 35.23%. DexCom has a consensus target price of $125.11, suggesting a potential upside of 0.93%. Given Axonics’ higher possible upside, equities research analysts clearly believe Axonics is more favorable than DexCom.

Summary

DexCom beats Axonics on 12 of the 15 factors compared between the two stocks.

About Axonics

(Get Rating)

Axonics, Inc. is a medical device company, which engages in developing and commercializing of novel implantable sacral neuromodulation (SNM) devices to treat patients with bladder and bowel dysfunction. Its product Bulkamid, which is a urethral bulking agent used to treat stress urinary incontinence in women. The company was founded by Raymond W. Cohen, Guang Qiang Jiang, and Danny L. Dearen in March 2012 and is headquartered in Irvine, CA.

About DexCom

(Get Rating)

DexCom, Inc. is a medical device manufacturing company, which engages in the design, development and commercialization of glucose monitoring systems for ambulatory use by people with diabetes. Its products include Dexcom G6 CGM System, DexCom G6 CGM System for Medicare, Software and Mobile apps. The company was founded by John F. Burd on May 1, 1999 and is headquartered in San Diego, CA.

Receive News & Ratings for Axonics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Axonics and related companies with MarketBeat.com's FREE daily email newsletter.