Medtronic (NYSE:MDT) versus Beta Bionics (NASDAQ:BBNX) Financial Contrast

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

Earnings & Valuation

This table compares Medtronic and Beta Bionics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medtronic	$36.36 billion	3.27	$4.80 billion	$4.06	22.92
Beta Bionics	$100.25 million	8.26	-$73.20 million	($1.65)	-11.15

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

Analyst Ratings

This is a summary of recent recommendations for Medtronic and Beta Bionics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medtronic	1	9	18	0	2.61
Beta Bionics	1	4	9	1	2.67

Medtronic presently has a consensus target price of $102.88, suggesting a potential upside of 10.57%. Beta Bionics has a consensus target price of $24.00, suggesting a potential upside of 30.43%. Given Beta Bionics’ stronger consensus rating and higher probable upside, analysts clearly believe Beta Bionics is more favorable than Medtronic.

Risk & Volatility

Medtronic has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.39, suggesting that its stock price is 239% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medtronic	13.93%	14.78%	7.97%
Beta Bionics	-61.31%	-26.30%	-23.25%

Insider and Institutional Ownership

82.1% of Medtronic shares are owned by institutional investors. 0.3% of Medtronic shares are owned by company insiders. Comparatively, 5.3% of Beta Bionics 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.

Summary

Medtronic beats Beta Bionics on 8 of the 14 factors compared between the two stocks.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

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.