Beta Bionics (BBNX) and Its Rivals Critical Analysis

Beta Bionics (NASDAQ:BBNX) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its competitors? We will compare Beta Bionics to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-65.31%	-27.33%	-24.28%
Beta Bionics Competitors	-304.51%	-178.77%	-22.17%

Insider and Institutional Ownership

40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 5.3% of Beta Bionics shares are owned by insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Beta Bionics has a beta of 3.44, meaning that its stock price is 244% more volatile than the S&P 500. Comparatively, Beta Bionics’ competitors have a beta of 2.57, meaning that their average stock price is 157% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Beta Bionics and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	4	9	1	2.67
Beta Bionics Competitors	4281	10557	18338	829	2.46

Beta Bionics presently has a consensus price target of $23.69, suggesting a potential upside of 43.33%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 19.65%. Given Beta Bionics’ stronger consensus rating and higher possible upside, analysts plainly believe Beta Bionics is more favorable than its competitors.

Earnings and Valuation

This table compares Beta Bionics and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beta Bionics	$127.27 million	-$73.20 million	-8.98
Beta Bionics Competitors	$1.89 billion	$135.83 million	12.24

Beta Bionics’ competitors have higher revenue and earnings than Beta Bionics. Beta Bionics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Beta Bionics beats its competitors on 7 of the 13 factors compared.

Beta Bionics Company Profile

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.