IRIDEX (NASDAQ:IRIX – Get Free Report) and Medtronic (NYSE:MDT – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Institutional and Insider Ownership
20.1% of IRIDEX shares are owned by institutional investors. Comparatively, 82.1% of Medtronic shares are owned by institutional investors. 8.6% of IRIDEX shares are owned by insiders. Comparatively, 0.3% of Medtronic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for IRIDEX and Medtronic, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IRIDEX | 1 | 0 | 1 | 0 | 2.00 |
| Medtronic | 1 | 9 | 18 | 0 | 2.61 |
IRIDEX currently has a consensus target price of $3.00, suggesting a potential upside of 316.67%. Medtronic has a consensus target price of $102.88, suggesting a potential upside of 1.26%. Given IRIDEX’s higher probable upside, equities analysts plainly believe IRIDEX is more favorable than Medtronic.
Volatility and Risk
IRIDEX has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.
Earnings & Valuation
This table compares IRIDEX and Medtronic”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IRIDEX | $52.67 million | 0.24 | -$4.44 million | ($0.20) | -3.60 |
| Medtronic | $37.54 billion | 3.46 | $4.80 billion | $4.06 | 25.02 |
Medtronic has higher revenue and earnings than IRIDEX. IRIDEX is trading at a lower price-to-earnings ratio than Medtronic, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares IRIDEX and Medtronic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IRIDEX | -6.88% | N/A | -12.55% |
| Medtronic | 13.93% | 14.78% | 7.97% |
Summary
Medtronic beats IRIDEX on 11 of the 14 factors compared between the two stocks.
About IRIDEX
IRIDEX Corporation (NASDAQ: IRIX) develops, manufactures and sells laser-based medical systems and disposable devices used in ophthalmic procedures. Its technologies are designed to help eye-care professionals treat glaucoma, retinal diseases and other conditions affecting vision. The company’s product portfolio includes the Cyclo Glaucoma Laser System, which uses MicroPulse and continuous-wave laser technology for glaucoma treatment, as well as laser systems such as the IRIDEX IQ series for retinal and photocoagulation procedures.
About Medtronic
Medtronic plc is a medical technology company that develops and manufactures devices and therapies for a range of health conditions. Its products include pacemakers and defibrillators, heart valves, surgical technologies, neurostimulation devices, and insulin pumps and other diabetes-management products. The company was founded in Minneapolis in 1949 by Earl Bakken and Palmer Hermundslie as a medical equipment repair business. It has since grown into a global company serving patients and health care providers in more than 150 countries.
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