Endologix (NASDAQ:ELGX) and 3M (NYSE:MMM) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Risk and Volatility

Endologix has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Endologix and 3M’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endologix $156.47 million 0.35 -$79.71 million ($7.20) -0.43
3M $32.77 billion 2.99 $5.35 billion $10.46 16.26

3M has higher revenue and earnings than Endologix. Endologix is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.

Dividends

3M pays an annual dividend of $5.76 per share and has a dividend yield of 3.4%. Endologix does not pay a dividend. 3M pays out 55.1% of its earnings in the form of a dividend.

Profitability

This table compares Endologix and 3M’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endologix -60.32% -120.57% -17.04%
3M 15.48% 54.02% 13.93%

Insider & Institutional Ownership

77.9% of Endologix shares are held by institutional investors. Comparatively, 66.7% of 3M shares are held by institutional investors. 1.3% of Endologix shares are held by insiders. Comparatively, 0.8% of 3M shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Endologix and 3M, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endologix 0 2 1 0 2.33
3M 3 7 2 0 1.92

Endologix currently has a consensus price target of $7.00, suggesting a potential upside of 125.08%. 3M has a consensus price target of $174.82, suggesting a potential upside of 2.77%. Given Endologix’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Endologix is more favorable than 3M.

Summary

3M beats Endologix on 11 of the 16 factors compared between the two stocks.

Endologix Company Profile

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California.

3M Company Profile

3M Company operates as a technology company worldwide. The company's Industrial segment offers tapes, abrasives, adhesives, ceramics, sealants, specialty materials, purification products, closure systems, acoustic systems products, automotive components, abrasion-resistant films, and paint finishing and detailing products. Its Safety and Graphics segment provides personal protection and transportation safety products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules, fall protection products, self-contained breathing apparatus systems, and gas and flame detection instruments. The company's Health Care segment offers medical and surgical supplies, skin health and infection prevention products, drug delivery and health information systems, dental and orthodontic products, and food safety products. Its Electronics and Energy segment provides optical films, packaging and interconnection devices, insulating and splicing solutions, touch screens and monitors, renewable energy component solutions, and infrastructure protection products. The company's Consumer segment offers consumer and office tapes and adhesives, repositionable notes, indexing systems, home improvement products, furnace filters, painter tapes, mounting and home care products, sponges, scouring pads, high-performance clothes, protective material products, and adhesive bandages and braces. It also provides cloud-based, conversational artificial intelligence-powered systems. It serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.

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