Glaukos (NYSE:GKOS) and SurModics (NASDAQ:SRDX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

84.8% of SurModics shares are held by institutional investors. 11.6% of Glaukos shares are held by company insiders. Comparatively, 7.7% of SurModics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Glaukos and SurModics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glaukos 0 3 7 0 2.70
SurModics 0 0 4 0 3.00

Glaukos presently has a consensus target price of $59.78, suggesting a potential downside of 10.14%. SurModics has a consensus target price of $80.33, suggesting a potential upside of 34.11%. Given SurModics’ stronger consensus rating and higher probable upside, analysts clearly believe SurModics is more favorable than Glaukos.

Risk & Volatility

Glaukos has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, SurModics has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Glaukos and SurModics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glaukos $159.25 million 14.58 -$90,000.00 N/A N/A
SurModics $81.34 million 9.83 -$4.45 million $0.49 122.24

Glaukos has higher revenue and earnings than SurModics.

Profitability

This table compares Glaukos and SurModics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glaukos -8.13% -9.26% -7.95%
SurModics -5.48% 6.12% 4.34%

Glaukos Company Profile

Glaukos Corporation, an ophthalmic medical technology and pharmaceutical company, focuses on the development and commercialization of surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. It offers iStent, a micro-bypass stent for insertion in conjunction with cataract surgery for the reduction of intraocular pressure in adult patients with mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Inject trabecular micro-bypass stent that allows the surgeon to inject stents into various trabecular meshwork locations through a single corneal entry; iStent Supra suprachoroidal micro-bypass stent, which is designed to reduce intraocular pressure by accessing the suprachoroidal space in the eye; and iDose, a targeted injectable drug delivery implant that is designed to be pre-loaded into a small gauge needle and injected into the eye through a self-sealing corneal needle penetration. Its product pipeline also consists of iStent SA trabecular micro-bypass system, a two-stent product that is slightly wider than the iStent Inject and uses a different auto-injection inserter designed for use in a standalone procedure; and iStent Infinite trabecular micro-bypass system, which is used as a standalone procedure in patients with refractory glaucoma. The company markets its products through direct sales force in the United States and internationally, as well as through distribution partners in Europe, the Asia Pacific, Latin America, and internationally. Glaukos Corporation has a collaboration agreement with D. Western Therapeutics Institute for the development of novel intraocular products for the treatment of glaucoma. The company was founded in 1998 and is headquartered in San Clemente, California.

SurModics Company Profile

Surmodics, Inc., together with its subsidiaries, provides medical devices and in vitro diagnostic technologies to the healthcare industry in the United States and Ireland. It operates through two segments, Medical Device and In Vitro Diagnostics. The Medical Device segment offers surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device for the coronary, peripheral, neuro-vascular, urology, and other markets. The Vitro Diagnostics segment provides stabilization products, substrates, antigens, and surface coatings to diagnostics customers; and manufactures or sells components for in vitro diagnostic immunoassay and molecular tests, as well as surface coatings to the diagnostic, biomedical research, and life science markets. SurModics, Inc. was founded in 1979 and is headquartered in Eden Prairie, Minnesota.

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