Head-To-Head Review: DexCom (NASDAQ:DXCM) & Fractyl Health (NASDAQ:GUTS)

DexCom (NASDAQ:DXCM) and Fractyl Health (NASDAQ:GUTS) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Profitability

This table compares DexCom and Fractyl Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DexCom	16.95%	31.41%	10.84%
Fractyl Health	N/A	N/A	N/A

Institutional & Insider Ownership

97.8% of DexCom shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for DexCom and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	0	6	11	1	2.72
Fractyl Health	0	0	3	0	3.00

DexCom currently has a consensus target price of $111.50, indicating a potential upside of 59.97%. Fractyl Health has a consensus target price of $22.00, indicating a potential upside of 448.63%. Given Fractyl Health’s stronger consensus rating and higher probable upside, analysts clearly believe Fractyl Health is more favorable than DexCom.

Valuation and Earnings

This table compares DexCom and Fractyl Health’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$3.62 billion	7.71	$541.50 million	$1.55	44.97
Fractyl Health	$120,000.00	1,600.66	-$77.09 million	N/A	N/A

DexCom has higher revenue and earnings than Fractyl Health.

Summary

DexCom beats Fractyl Health on 9 of the 12 factors compared between the two stocks.

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.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.