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

Valuation and Earnings

This table compares Hill-Rom Holdings and Inogen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hill-Rom Holdings $2.71 billion 1.86 $465.30 million $1.73 44.34
Inogen $221.89 million 9.04 $36.52 million $1.06 91.33

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

Profitability

This table compares Hill-Rom Holdings and Inogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill-Rom Holdings 4.27% 19.99% 5.73%
Inogen 10.36% 12.45% 10.36%

Dividends

Hill-Rom Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. Inogen does not pay a dividend. Hill-Rom Holdings pays out 41.6% of its earnings in the form of a dividend. Hill-Rom Holdings has raised its dividend for 6 consecutive years.

Institutional & Insider Ownership

82.3% of Hill-Rom Holdings shares are held by institutional investors. 2.2% of Hill-Rom Holdings shares are held by company insiders. Comparatively, 5.3% of Inogen shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Hill-Rom Holdings has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Inogen has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hill-Rom Holdings and Inogen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill-Rom Holdings 0 1 4 0 2.80
Inogen 0 2 2 0 2.50

Hill-Rom Holdings currently has a consensus target price of $87.80, indicating a potential upside of 14.46%. Inogen has a consensus target price of $91.00, indicating a potential downside of 6.00%. Given Hill-Rom Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Hill-Rom Holdings is more favorable than Inogen.

Summary

Hill-Rom Holdings beats Inogen on 11 of the 17 factors compared between the two stocks.

Hill-Rom Holdings Company Profile

Hill-Rom Holdings, Inc. is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions. The Company sells and rents its specialty frames and surfaces, and mobility solutions, as well as its clinical workflow solutions, in the United States and Canada through its North America Patient Support Systems segment, and in regions outside of the United States and Canada through its International Patient Support Systems segment. Its Front Line Care segment globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat and manage a range of illnesses and diseases. Under its Surgical Solutions segment, the Company sells its surgical products globally.

Inogen Company Profile

Inogen, Inc. is a medical technology company. The Company develops, manufactures and markets portable oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The Company’s Inogen One systems concentrate the air around the patient to offer a single source of supplemental oxygen anytime, anywhere with a portable device. Its three portable product offerings, the Inogen One G4, Inogen One G3 and Inogen One G2, at approximately 2.8, 4.8 and 7.0 pounds with a single battery, respectively. Its Inogen One G4, Inogen One G3 and Inogen One G2 are sub-3, sub-5 and sub-10 pound portable oxygen concentrators, respectively. All of its Inogen One systems are equipped with Intelligent Delivery Technology. The Inogen At Home stationary oxygen concentrator allows it to access the non-ambulatory oxygen patient market and serves as a backup to its Inogen One system for ambulatory patients on its rental service.

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