DexCom (NASDAQ:DXCM – Get Free Report) and Nuwellis (NASDAQ:NUWE – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Insider & Institutional Ownership
97.8% of DexCom shares are held by institutional investors. Comparatively, 3.1% of Nuwellis shares are held by institutional investors. 0.3% of DexCom shares are held by insiders. Comparatively, 1.6% of Nuwellis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
DexCom has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Nuwellis has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DexCom | $4.66 billion | 6.72 | $836.30 million | $2.53 | 32.81 |
| Nuwellis | $8.27 million | 0.02 | -$17.52 million | ($2,238.46) | -0.00 |
DexCom has higher revenue and earnings than Nuwellis. Nuwellis is trading at a lower price-to-earnings ratio than DexCom, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for DexCom and Nuwellis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DexCom | 1 | 3 | 21 | 2 | 2.89 |
| Nuwellis | 1 | 0 | 0 | 0 | 1.00 |
DexCom presently has a consensus target price of $88.71, indicating a potential upside of 6.85%. Given DexCom’s stronger consensus rating and higher possible upside, research analysts clearly believe DexCom is more favorable than Nuwellis.
Profitability
This table compares DexCom and Nuwellis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DexCom | 20.12% | 35.94% | 14.75% |
| Nuwellis | -214.90% | -32,351.83% | -249.08% |
Summary
DexCom beats Nuwellis on 14 of the 15 factors compared between the two stocks.
About DexCom
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.
About Nuwellis
Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.
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