Critical Review: KORU Medical Systems (NASDAQ:KRMD) vs. Intuitive Surgical (NASDAQ:ISRG)

KORU Medical Systems (NASDAQ:KRMD) and Intuitive Surgical (NASDAQ:ISRG) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Profitability

This table compares KORU Medical Systems and Intuitive Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KORU Medical Systems	-1.78%	-4.62%	-2.90%
Intuitive Surgical	25.54%	18.17%	15.73%

Volatility and Risk

KORU Medical Systems has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

58.6% of KORU Medical Systems shares are held by institutional investors. Comparatively, 83.6% of Intuitive Surgical shares are held by institutional investors. 18.5% of KORU Medical Systems shares are held by insiders. Comparatively, 0.6% of Intuitive Surgical shares are held by 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 Recommendations

This is a breakdown of recent ratings and price targets for KORU Medical Systems and Intuitive Surgical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KORU Medical Systems	1	2	4	0	2.43
Intuitive Surgical	1	5	23	1	2.80

KORU Medical Systems presently has a consensus price target of $6.50, suggesting a potential upside of 75.91%. Intuitive Surgical has a consensus price target of $493.54, suggesting a potential upside of 10.92%. Given KORU Medical Systems’ higher possible upside, research analysts plainly believe KORU Medical Systems is more favorable than Intuitive Surgical.

Valuation & Earnings

This table compares KORU Medical Systems and Intuitive Surgical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KORU Medical Systems	$41.13 million	3.90	-$2.64 million	($0.02)	-184.75
Intuitive Surgical	$10.06 billion	15.32	$2.86 billion	$8.27	53.80

Intuitive Surgical has higher revenue and earnings than KORU Medical Systems. KORU Medical Systems is trading at a lower price-to-earnings ratio than Intuitive Surgical, indicating that it is currently the more affordable of the two stocks.

Summary

Intuitive Surgical beats KORU Medical Systems on 13 of the 15 factors compared between the two stocks.

About KORU Medical Systems

KORU Medical Systems develops, manufactures and markets medical devices used to deliver medications under the skin, or subcutaneously. Its products are designed for patients receiving therapies outside traditional infusion settings, including at home. The company’s product line includes the Freedom60 and FreedomEDGE ambulatory infusion pumps, Precision Flow Rate Tubing and HIgH-Flo subcutaneous needle sets. These products are used with subcutaneous immunoglobulin and other specialty therapies. Founded in 1980 as Repro Med Systems, the company adopted the name KORU Medical Systems in 2020.

About Intuitive Surgical

Intuitive Surgical develops, manufactures and markets robotic-assisted systems for minimally invasive procedures. Its products include da Vinci surgical systems, which allow surgeons to control instruments and a high-definition vision system from a console, as well as the Ion endoluminal system, designed to assist with minimally invasive lung biopsies. The company also provides instruments, accessories, training and support services for its systems. Its technology is used in a range of surgical specialties, including urology, general surgery and gynecology.