Critical Comparison: Glaukos (NYSE:GKOS) versus Inogen (NASDAQ:INGN)

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

Risk and Volatility

Inogen has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Glaukos has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inogen	-7.31%	-13.21%	-8.30%
Glaukos	-18.65%	-7.52%	-5.87%

Insider and Institutional Ownership

89.9% of Inogen shares are held by institutional investors. Comparatively, 99.0% of Glaukos shares are held by institutional investors. 1.5% of Inogen shares are held by company insiders. Comparatively, 6.4% of Glaukos shares are held 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.

Valuation & Earnings

This table compares Inogen and Glaukos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inogen	$335.70 million	0.46	-$35.89 million	($1.01)	-5.60
Glaukos	$383.48 million	16.86	-$146.37 million	($1.54)	-73.08

Inogen has higher earnings, but lower revenue than Glaukos. Glaukos is trading at a lower price-to-earnings ratio than Inogen, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Inogen and Glaukos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inogen	1	1	1	0	2.00
Glaukos	2	1	12	1	2.75

Inogen presently has a consensus target price of $11.00, suggesting a potential upside of 94.35%. Glaukos has a consensus target price of $132.54, suggesting a potential upside of 17.77%. Given Inogen’s higher probable upside, analysts plainly believe Inogen is more favorable than Glaukos.

Summary

Glaukos beats Inogen on 9 of the 15 factors compared between the two stocks.

About Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.

About Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.