Head-To-Head Review: Outset Medical (NASDAQ:OM) vs. 10x Genomics (NASDAQ:TXG)

10x Genomics (NASDAQ:TXG) and Outset Medical (NASDAQ:OM) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings and Valuation

This table compares 10x Genomics and Outset Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
10x Genomics	$642.82 million	6.87	-$43.54 million	($0.17)	-204.47
Outset Medical	$119.48 million	0.78	-$81.65 million	($4.16)	-1.21

10x Genomics has higher revenue and earnings than Outset Medical. 10x Genomics is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 10x Genomics and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
10x Genomics	-3.55%	-2.86%	-2.23%
Outset Medical	-63.65%	-56.13%	-27.45%

Analyst Recommendations

This is a summary of recent ratings for 10x Genomics and Outset Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
10x Genomics	1	10	4	0	2.20
Outset Medical	1	1	3	0	2.40

10x Genomics presently has a consensus target price of $23.17, suggesting a potential downside of 33.35%. Outset Medical has a consensus target price of $10.00, suggesting a potential upside of 98.02%. Given Outset Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Outset Medical is more favorable than 10x Genomics.

Risk & Volatility

10x Genomics has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

84.7% of 10x Genomics shares are owned by institutional investors. 8.8% of 10x Genomics shares are owned by company insiders. Comparatively, 2.5% of Outset Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

10x Genomics beats Outset Medical on 11 of the 14 factors compared between the two stocks.

About 10x Genomics

10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity and networks on a cell-by-cell basis; single cell gene expression flex; single cell immune profiling used to study the immune system; single cell Assay for Transposase Accessible Chromati (ATAC) solution to understand the epigenetic state; and single cell multiome ATAC + gene expression which enables simultaneous interrogation of both the RNA and chromatin accessibility, using ATAC in a single cell. The company also provides Visium platform which enables researchers to understand the spatial positions of biological analytes within tissues at high resolution; and Xenium platform for in situ analysis. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.