Zynex (NASDAQ:ZYXI – Get Free Report) and DexCom (NASDAQ:DXCM – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Zynex and DexCom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zynex | 1 | 0 | 0 | 0 | 1.00 |
| DexCom | 0 | 2 | 19 | 3 | 3.04 |
DexCom has a consensus price target of $92.43, indicating a potential upside of 18.05%. Given DexCom’s stronger consensus rating and higher probable upside, analysts clearly believe DexCom is more favorable than Zynex.
Insider and Institutional Ownership
29.7% of Zynex shares are held by institutional investors. Comparatively, 97.8% of DexCom shares are held by institutional investors. 49.3% of Zynex shares are held by company insiders. Comparatively, 0.3% of DexCom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Zynex has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, DexCom has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
Profitability
This table compares Zynex and DexCom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zynex | -68.35% | -804.30% | -36.67% |
| DexCom | 20.12% | 35.94% | 14.75% |
Valuation and Earnings
This table compares Zynex and DexCom”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zynex | $108.20 million | 0.04 | $2.99 million | ($2.43) | -0.05 |
| DexCom | $4.97 billion | 5.95 | $836.30 million | $2.53 | 30.95 |
DexCom has higher revenue and earnings than Zynex. Zynex is trading at a lower price-to-earnings ratio than DexCom, indicating that it is currently the more affordable of the two stocks.
Summary
DexCom beats Zynex on 14 of the 15 factors compared between the two stocks.
About Zynex
Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.
About DexCom
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.
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