Head to Head Analysis: Beta Bionics (NASDAQ:BBNX) and Edwards Lifesciences (NYSE:EW)

Beta Bionics (NASDAQ:BBNX) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Beta Bionics and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-60.27%	-23.00%	-20.55%
Edwards Lifesciences	17.39%	15.19%	11.71%

Earnings & Valuation

This table compares Beta Bionics and Edwards Lifesciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$100.25 million	6.04	-$73.20 million	($1.51)	-9.00
Edwards Lifesciences	$6.07 billion	8.29	$1.07 billion	$1.88	46.48

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

Institutional & Insider Ownership

79.5% of Edwards Lifesciences shares are owned by institutional investors. 5.3% of Beta Bionics shares are owned by company insiders. Comparatively, 0.3% of Edwards Lifesciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Beta Bionics has a beta of 3.4, suggesting that its stock price is 240% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Beta Bionics and Edwards Lifesciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	3	6	1	2.64
Edwards Lifesciences	0	8	16	3	2.81

Beta Bionics presently has a consensus target price of $19.70, indicating a potential upside of 45.01%. Edwards Lifesciences has a consensus target price of $95.96, indicating a potential upside of 9.80%. Given Beta Bionics’ higher possible upside, equities analysts plainly believe Beta Bionics is more favorable than Edwards Lifesciences.

Summary

Edwards Lifesciences beats Beta Bionics on 12 of the 15 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

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.