Analyzing Echo Therapeutics (ECTE) and Medtronic (MDT)

Echo Therapeutics (OTCMKTS:ECTE) and Medtronic (NYSE:MDT) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Institutional & Insider Ownership

81.5% of Medtronic shares are held by institutional investors. 7.0% of Echo Therapeutics shares are held by company insiders. Comparatively, 0.3% of Medtronic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Echo Therapeutics and Medtronic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Therapeutics 0 0 0 0 N/A
Medtronic 0 8 14 1 2.70

Medtronic has a consensus price target of $103.32, indicating a potential upside of 16.18%. Given Medtronic’s higher possible upside, analysts clearly believe Medtronic is more favorable than Echo Therapeutics.

Profitability

This table compares Echo Therapeutics and Medtronic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Therapeutics N/A N/A N/A
Medtronic 16.10% 13.85% 7.77%

Valuation & Earnings

This table compares Echo Therapeutics and Medtronic’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echo Therapeutics N/A N/A N/A N/A N/A
Medtronic $29.95 billion 3.98 $3.10 billion $4.77 18.64

Medtronic has higher revenue and earnings than Echo Therapeutics.

Volatility and Risk

Echo Therapeutics has a beta of 8.34, indicating that its stock price is 734% more volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Dividends

Medtronic pays an annual dividend of $2.00 per share and has a dividend yield of 2.2%. Echo Therapeutics 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 41 consecutive years.

Summary

Medtronic beats Echo Therapeutics on 10 of the 13 factors compared between the two stocks.

About Echo Therapeutics

Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.

About Medtronic

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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