Head-To-Head Review: ABIOMED (ABMD) and ICU Medical (ICUI)

ABIOMED (NASDAQ: ICUI) and ICU Medical (NASDAQ:ICUI) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation & Earnings

This table compares ABIOMED and ICU Medical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABIOMED $593.75 million 27.84 $112.17 million $2.45 150.33
ICU Medical $1.29 billion 4.61 $68.64 million $5.52 53.13

ABIOMED has higher earnings, but lower revenue than ICU Medical. ICU Medical is trading at a lower price-to-earnings ratio than ABIOMED, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ABIOMED has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, ICU Medical has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Institutional & Insider Ownership

87.5% of ABIOMED shares are held by institutional investors. Comparatively, 72.7% of ICU Medical shares are held by institutional investors. 3.5% of ABIOMED shares are held by insiders. Comparatively, 12.5% of ICU Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares ABIOMED and ICU Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ABIOMED 25.71% 18.91% 16.64%
ICU Medical 5.93% 12.97% 10.26%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ABIOMED and ICU Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABIOMED 0 2 6 0 2.75
ICU Medical 0 0 0 0 N/A

ABIOMED currently has a consensus target price of $363.14, suggesting a potential downside of 1.30%. Given ABIOMED’s higher possible upside, analysts clearly believe ABIOMED is more favorable than ICU Medical.

Summary

ABIOMED beats ICU Medical on 9 of the 13 factors compared between the two stocks.

ABIOMED Company Profile

ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.

ICU Medical Company Profile

ICU Medical, Inc. develops, manufactures, and sells medical devices used in vascular therapy, critical care, and oncology applications worldwide. It offers infusion therapy products comprising a tube running from a bottle or plastic bag containing a solution to a catheter inserted in a patient's vein. The company's infusion therapy products include needlefree connector products under the MicroClave, MicroClave, and NanoClave brands; Neutron catheter patency connectors; SwabCap disinfecting caps; Tego hemodialysis connectors; NovaCath and SuperCath peripheral intravenous (IV) catheters; and ChemoLock and ChemoClave closed system transfer devices, as well as Diana hazardous drug compounding system for the preparation of hazardous drugs. It also provides IV solutions, such as normal salines, ringers, etc., which are used to replenish fluids and electrolytes; irrigation solutions to hydrate the wound, remove deep debris, assist with visual examination, to prevent infection, and improve healing; and nutritional solutions that feed vitamins, minerals, and other natural therapeutic substances directly into the blood stream. In addition, the company offers infusion pumps under the Plum 360, LifeCare PCA, SapphirePlus, and Sapphire names; Cogent 2-in-1 and LiDCO LX1 hemodynamic monitoring systems; CardioFlo hemodynamic monitoring sensors; TriOx PICC invasive venous oximetry sensors; SafeSet closed blood sampling and conservation systems; Transpac consumable blood pressure transducers; and Q2 Plus continuous cardiac output/oximetry systems. The company sells its products primarily to acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, such as clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is headquartered in San Clemente, California.

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