Head-To-Head Review: Modular Medical (NASDAQ:MODD) and Boston Scientific (NYSE:BSX)

Modular Medical (NASDAQ:MODD) and Boston Scientific (NYSE:BSX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

This table compares Modular Medical and Boston Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modular Medical	N/A	-286.34%	-216.26%
Boston Scientific	17.29%	19.17%	10.77%

Risk and Volatility

Modular Medical has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Boston Scientific has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares Modular Medical and Boston Scientific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modular Medical	N/A	N/A	-$28.24 million	($14.71)	-0.30
Boston Scientific	$20.07 billion	3.16	$2.90 billion	$2.39	17.88

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

Analyst Ratings

This is a summary of current recommendations and price targets for Modular Medical and Boston Scientific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modular Medical	1	0	0	0	1.00
Boston Scientific	2	4	23	1	2.77

Boston Scientific has a consensus target price of $80.72, suggesting a potential upside of 88.89%. Given Boston Scientific’s stronger consensus rating and higher probable upside, analysts plainly believe Boston Scientific is more favorable than Modular Medical.

Institutional & Insider Ownership

27.5% of Modular Medical shares are owned by institutional investors. Comparatively, 89.1% of Boston Scientific shares are owned by institutional investors. 7.1% of Modular Medical shares are owned by company insiders. Comparatively, 0.3% of Boston Scientific shares are owned 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.

Summary

Boston Scientific beats Modular Medical on 13 of the 14 factors compared between the two stocks.

About Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, California.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.