Tandem Diabetes Care (NASDAQ:TNDM) vs. Edwards Lifesciences (NYSE:EW) Critical Survey

Tandem Diabetes Care (NASDAQ:TNDM) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Tandem Diabetes Care has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tandem Diabetes Care and Edwards Lifesciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandem Diabetes Care	$1.01 billion	1.31	-$204.71 million	($3.07)	-6.30
Edwards Lifesciences	$6.07 billion	7.77	$1.07 billion	$1.83	44.70

Edwards Lifesciences has higher revenue and earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.5% of Edwards Lifesciences shares are held by institutional investors. 1.9% of Tandem Diabetes Care shares are held by insiders. Comparatively, 1.3% of Edwards Lifesciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Tandem Diabetes Care and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandem Diabetes Care	-20.17%	-68.23%	-11.07%
Edwards Lifesciences	17.69%	14.50%	11.21%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tandem Diabetes Care and Edwards Lifesciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandem Diabetes Care	1	9	8	1	2.47
Edwards Lifesciences	0	9	16	3	2.79

Tandem Diabetes Care currently has a consensus target price of $29.22, indicating a potential upside of 51.02%. Edwards Lifesciences has a consensus target price of $95.96, indicating a potential upside of 17.31%. Given Tandem Diabetes Care’s higher possible upside, research analysts clearly believe Tandem Diabetes Care is more favorable than Edwards Lifesciences.

Summary

Edwards Lifesciences beats Tandem Diabetes Care on 12 of the 15 factors compared between the two stocks.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.