Head to Head Survey: ABIOMED (NASDAQ:ABMD) and Irhythm Technologies (NASDAQ:IRTC) – Mitchell Messenger

Posted: Published on November 18th, 2019

This post was added by Alex Diaz-Granados

Irhythm Technologies (NASDAQ:IRTC) and ABIOMED (NASDAQ:ABMD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Profitability

This table compares Irhythm Technologies and ABIOMEDs net margins, return on equity and return on assets.

This table compares Irhythm Technologies and ABIOMEDs revenue, earnings per share (EPS) and valuation.

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

Risk & Volatility

Irhythm Technologies has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Irhythm Technologies and ABIOMED, as reported by MarketBeat.

Irhythm Technologies presently has a consensus target price of $101.63, suggesting a potential upside of 45.85%. ABIOMED has a consensus target price of $298.75, suggesting a potential upside of 33.83%. Given Irhythm Technologies stronger consensus rating and higher possible upside, equities research analysts clearly believe Irhythm Technologies is more favorable than ABIOMED.

Insider and Institutional Ownership

91.4% of ABIOMED shares are owned by institutional investors. 3.9% of Irhythm Technologies shares are owned by insiders. Comparatively, 3.4% of ABIOMED shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

ABIOMED beats Irhythm Technologies on 9 of the 14 factors compared between the two stocks.

Irhythm Technologies Company Profile

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. Its Zio XT monitor, a single-use, wire-free, and wearable patch-based biosensor, records patient's heartbeats and ECG data. The company was founded in 2006 and is headquartered in San Francisco, California.

ABIOMED Company Profile

ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.

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Head to Head Survey: ABIOMED (NASDAQ:ABMD) and Irhythm Technologies (NASDAQ:IRTC) - Mitchell Messenger

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