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

Institutional & Insider Ownership

14.5% of Vision Sciences shares are owned by institutional investors. Comparatively, 79.9% of Medtronic shares are owned by institutional investors. 62.7% of Vision Sciences shares are owned by company insiders. Comparatively, 0.3% of Medtronic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Vision Sciences and Medtronic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vision Sciences -1.57% -1.39% -1.21%
Medtronic 10.56% 12.98% 7.10%

Analyst Ratings

This is a summary of current ratings and target prices for Vision Sciences and Medtronic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vision Sciences 0 2 1 0 2.33
Medtronic 0 7 12 1 2.70

Vision Sciences presently has a consensus target price of $4.58, suggesting a potential upside of 19.05%. Medtronic has a consensus target price of $100.61, suggesting a potential upside of 1.77%. Given Vision Sciences’ higher possible upside, equities research analysts plainly believe Vision Sciences is more favorable than Medtronic.

Valuation & Earnings

This table compares Vision Sciences and Medtronic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vision Sciences $56.32 million 4.16 -$880,000.00 ($0.01) -385.00
Medtronic $29.95 billion 4.46 $3.10 billion $4.77 20.73

Medtronic has higher revenue and earnings than Vision Sciences. Vision Sciences is trading at a lower price-to-earnings ratio than Medtronic, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Vision Sciences has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Dividends

Medtronic pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. Vision Sciences does not pay a dividend. Medtronic pays out 41.9% of its earnings in the form of a dividend. Medtronic has raised its dividend for 40 consecutive years.

Summary

Medtronic beats Vision Sciences on 15 of the 18 factors compared between the two stocks.

Vision Sciences Company Profile

Cogentix Medical, Inc., a medical device company, designs, develops, manufactures, and markets fiberoptic and video endoscopy products under the PrimeSight brand worldwide. The company offers endoscopes, such as cystoscopes, laryngoscopes, transnasal esophagoscopes, and bronchoscopes for medical use; and borescopes for industrial use, as well as digital processing units for medical use. It also provides EndoSheath Protective Barrier, a sterile, single-use microbial barrier for use with flexible endoscopes. In addition, the company offers Urgent PC System, a neuromodulation system that delivers percutaneous tibial nerve stimulation for office-based treatment of overactive bladder; and Macroplastique, an injectable, urethral bulking agent for the treatment of adult female stress urinary incontinence. Further, it provides Macroplastique products for the treatment of vesicoureteral reflux; PTQ Implants to treat fecal incontinence; Urgent PC System for the treatment of fecal incontinence; and VOX Implants to enhance speech and swallowing function in patients with unilateral vocal cord paralysis. Additionally, the company distributes wound care products in the Netherlands and the United Kingdom. Cogentix Medical, Inc. sells its products through a direct sales force and a network of distributor organizations. The company was founded in 1987 and is headquartered in Minnetonka, Minnesota.

Medtronic Company Profile

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. The Cardiac and Vascular Group segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; AF ablation product; insertable cardiac monitor systems; mechanical circulatory support; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves; percutaneous coronary intervention stents, surgical valve replacement and repair products, endovascular stent grafts, percutaneous angioplasty balloons, and products to treat superficial venous diseases in the lower extremities. The Minimally Invasive Therapies Group segment offers surgical products, including surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, hernia mechanical devices, mesh implants, and gynecology products; hardware instruments and mesh fixation device; and gastrointestinal, inhalation therapy, and renal care solutions. The Restorative Therapies Group segment offers products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, colorectal surgeons, urogynecologists, interventional radiologists, and ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems; and therapies for vasculature in and around the brain. The Diabetes Group segment offers insulin pumps and consumables, continuous glucose monitoring systems, and therapy management software. The company was founded in 1949 and is headquartered in Dublin, Ireland.

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