Comparing Edap Tms (EDAP) and Edwards Lifesciences (EW)

Edap Tms (NASDAQ: EDAP) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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This table compares Edap Tms and Edwards Lifesciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edap Tms -5.36% 7.85% 4.24%
Edwards Lifesciences 18.11% 27.78% 15.54%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Edap Tms and Edwards Lifesciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edap Tms 0 0 1 0 3.00
Edwards Lifesciences 0 2 15 1 2.94

Edap Tms currently has a consensus price target of $6.50, indicating a potential upside of 192.79%. Edwards Lifesciences has a consensus price target of $141.94, indicating a potential upside of 1.88%. Given Edap Tms’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Edap Tms is more favorable than Edwards Lifesciences.

Valuation & Earnings

This table compares Edap Tms and Edwards Lifesciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Edap Tms $39.28 million 1.64 $4.25 million ($0.08) -27.75
Edwards Lifesciences $3.44 billion 8.52 $583.60 million $4.10 33.98

Edwards Lifesciences has higher revenue and earnings than Edap Tms. Edap Tms is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

9.4% of Edap Tms shares are owned by institutional investors. Comparatively, 81.3% of Edwards Lifesciences shares are owned by institutional investors. 2.1% of Edwards Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Edap Tms has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Edwards Lifesciences beats Edap Tms on 12 of the 15 factors compared between the two stocks.

Edap Tms Company Profile

EDAP TMS S.A. (EDAP) is a holding company engaged in developing and marketing the Ablatherm and Focal One devices. The Company operates two divisions: High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) (including lithotripsy activities). The Company is developing HIFU technology for the treatment of certain other types of tumors. The Company also produces and commercializes medical equipment for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL) and distributes other types of urology devices in certain countries. The HIFU division is engaged in the development, manufacturing and marketing of medical devices based on HIFU technology for the invasive treatment of urological and other clinical indications. The UDS division is engaged in the development, marketing, manufacturing and servicing of medical devices for the invasive diagnosis or treatment of urological disorders, urinary stones, and other clinical indications.

Edwards Lifesciences Company Profile

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

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