Analyzing Glaukos (NYSE:GKOS) and Cardiovascular Systems (NASDAQ:CSII)

Cardiovascular Systems (NASDAQ:CSII) and Glaukos (NYSE:GKOS) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Risk and Volatility

Cardiovascular Systems has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Glaukos has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Cardiovascular Systems and Glaukos, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardiovascular Systems 0 0 6 0 3.00
Glaukos 1 5 1 0 2.00

Cardiovascular Systems currently has a consensus price target of $47.50, indicating a potential upside of 27.65%. Glaukos has a consensus price target of $70.14, indicating a potential downside of 4.89%. Given Cardiovascular Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Cardiovascular Systems is more favorable than Glaukos.

Valuation & Earnings

This table compares Cardiovascular Systems and Glaukos’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardiovascular Systems $236.54 million 6.32 -$27.24 million ($0.79) -47.10
Glaukos $236.98 million 14.40 $15.42 million ($0.10) -737.50

Glaukos has higher revenue and earnings than Cardiovascular Systems. Glaukos is trading at a lower price-to-earnings ratio than Cardiovascular Systems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.7% of Cardiovascular Systems shares are owned by institutional investors. 3.0% of Cardiovascular Systems shares are owned by insiders. Comparatively, 8.7% of Glaukos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Cardiovascular Systems and Glaukos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardiovascular Systems -10.12% -11.43% -8.36%
Glaukos -33.61% -7.99% -5.87%

Summary

Glaukos beats Cardiovascular Systems on 9 of the 14 factors compared between the two stocks.

Cardiovascular Systems Company Profile

Cardiovascular Systems, Inc., a medical device company, develops and commercializes various devices to treat peripheral and coronary artery diseases in the United States. The company offers peripheral artery disease products, which are catheter-based platforms to treat a range of plaque types in above and below the knee leg arteries, including calcified plaque, as well as address various limitations related with surgical, catheter, and pharmacological treatment alternatives; and peripheral support products. It also provides Diamondback 360 Coronary orbital atherectomy systems (OAS), a coronary artery disease (CAD) product designed to facilitate stent delivery in patients with CAD who are acceptable candidates for percutaneous transluminal coronary angioplasty or stenting due to severely calcified coronary artery lesions. The company has a partnership with Chansu Vascular Technologies, LLC to develop novel peripheral and coronary everolimus drug-coated balloons. Cardiovascular Systems, Inc. was founded in 1989 and is headquartered in St. Paul, Minnesota.

Glaukos Company Profile

Glaukos Corporation, an ophthalmic medical technology and pharmaceutical company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent, iStent inject, iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite for use as a standalone procedure in patients with refractory glaucoma; iStent SA, a two-stent product that is designed for use as a standalone glaucoma procedure; and iDose TR, a targeted injectable implant based on its micro-scale device-platform that is designed to deliver therapeutic levels of medication. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in San Clemente, California.

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