Head-To-Head Analysis: Electromed (NYSE:ELMD) vs. Masimo (NASDAQ:MASI)

Electromed (NYSE:ELMDGet Rating) and Masimo (NASDAQ:MASIGet Rating) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Electromed and Masimo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electromed 0 0 0 0 N/A
Masimo 0 3 3 0 2.50

Masimo has a consensus price target of $179.60, suggesting a potential upside of 32.02%. Given Masimo’s higher probable upside, analysts clearly believe Masimo is more favorable than Electromed.

Volatility & Risk

Electromed has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Masimo has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares Electromed and Masimo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electromed $35.76 million 2.97 $2.36 million $0.26 47.89
Masimo $1.24 billion 6.09 $229.65 million $3.87 35.15

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

Insider and Institutional Ownership

32.7% of Electromed shares are held by institutional investors. Comparatively, 92.0% of Masimo shares are held by institutional investors. 26.7% of Electromed shares are held by insiders. Comparatively, 9.7% of Masimo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Electromed and Masimo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electromed 5.83% 7.04% 6.15%
Masimo 17.91% 15.46% 12.78%

Summary

Masimo beats Electromed on 11 of the 13 factors compared between the two stocks.

Electromed Company Profile (Get Rating)

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.

Masimo Company Profile (Get Rating)

Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. It offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. It offers connectivity devices; and nasal high flow ventilation and neuromodulation solutions. It provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and non-medical/consumer products through e-commerce site, masimopersonalhealth.com. The company was incorporated in 1989 and is headquartered in Irvine, California.

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