QuidelOrtho (NASDAQ:QDEL) & Insulet (NASDAQ:PODD) Critical Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insulet	$2.07 billion	8.24	$418.30 million	$3.45	70.36
QuidelOrtho	$2.73 billion	0.59	-$1.13 billion	($16.66)	-1.42

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

Profitability

This table compares Insulet and QuidelOrtho’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insulet	9.76%	24.36%	10.02%
QuidelOrtho	-41.46%	5.91%	2.37%

Risk and Volatility

Insulet has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, QuidelOrtho has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Insulet and QuidelOrtho, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insulet	0	4	20	0	2.83
QuidelOrtho	2	3	1	0	1.83

Insulet currently has a consensus price target of $374.10, suggesting a potential upside of 54.11%. QuidelOrtho has a consensus price target of $31.50, suggesting a potential upside of 33.59%. Given Insulet’s stronger consensus rating and higher probable upside, analysts clearly believe Insulet is more favorable than QuidelOrtho.

Institutional & Insider Ownership

99.0% of QuidelOrtho shares are held by institutional investors. 0.4% of Insulet shares are held by company insiders. Comparatively, 0.8% of QuidelOrtho shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Insulet beats QuidelOrtho on 11 of the 14 factors compared between the two stocks.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

About QuidelOrtho

QuidelOrtho Corporation provides diagnostic testing solutions. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides instruments and tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; amplification systems; and sample-to-result molecular instruments and tests for syndromic infectious disease diagnostics. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was incorporated in 1979 and is headquartered in San Diego, California.