10x Genomics (NASDAQ:TXG – Get Free Report) and Outset Medical (NASDAQ:OM – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
10x Genomics has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.
Valuation & Earnings
This table compares 10x Genomics and Outset Medical”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 10x Genomics | $642.82 million | 7.06 | -$43.54 million | ($0.17) | -210.18 |
| Outset Medical | $119.48 million | 0.71 | -$81.65 million | ($4.16) | -1.10 |
10x Genomics has higher revenue and earnings than Outset Medical. 10x Genomics is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares 10x Genomics and Outset Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 10x Genomics | -3.55% | -2.86% | -2.23% |
| Outset Medical | -63.65% | -56.13% | -27.45% |
Analyst Recommendations
This is a summary of recent ratings for 10x Genomics and Outset Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 10x Genomics | 1 | 10 | 4 | 0 | 2.20 |
| Outset Medical | 1 | 1 | 3 | 0 | 2.40 |
10x Genomics currently has a consensus target price of $24.00, suggesting a potential downside of 32.83%. Outset Medical has a consensus target price of $10.00, suggesting a potential upside of 117.86%. Given Outset Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Outset Medical is more favorable than 10x Genomics.
Institutional and Insider Ownership
84.7% of 10x Genomics shares are owned by institutional investors. 8.8% of 10x Genomics shares are owned by insiders. Comparatively, 2.5% of Outset Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
10x Genomics beats Outset Medical on 11 of the 14 factors compared between the two stocks.
About 10x Genomics
10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity and networks on a cell-by-cell basis; single cell gene expression flex; single cell immune profiling used to study the immune system; single cell Assay for Transposase Accessible Chromati (ATAC) solution to understand the epigenetic state; and single cell multiome ATAC + gene expression which enables simultaneous interrogation of both the RNA and chromatin accessibility, using ATAC in a single cell. The company also provides Visium platform which enables researchers to understand the spatial positions of biological analytes within tissues at high resolution; and Xenium platform for in situ analysis. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
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