Edwards Lifesciences Corporation (EW) versus Natus Medical (BABY) Head to Head Review

Edwards Lifesciences Corporation (NYSE: EW) and Natus Medical (NASDAQ:BABY) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

82.1% of Edwards Lifesciences Corporation shares are owned by institutional investors. Comparatively, 92.7% of Natus Medical shares are owned by institutional investors. 2.1% of Edwards Lifesciences Corporation shares are owned by company insiders. Comparatively, 5.5% of Natus Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Edwards Lifesciences Corporation and Natus Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edwards Lifesciences Corporation 0 5 14 1 2.80
Natus Medical 1 1 1 0 2.00

Edwards Lifesciences Corporation presently has a consensus target price of $120.05, suggesting a potential upside of 8.92%. Natus Medical has a consensus target price of $48.00, suggesting a potential upside of 19.40%. Given Natus Medical’s higher probable upside, analysts clearly believe Natus Medical is more favorable than Edwards Lifesciences Corporation.

Risk and Volatility

Edwards Lifesciences Corporation has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Natus Medical has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Edwards Lifesciences Corporation and Natus Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edwards Lifesciences Corporation 22.16% 27.17% 15.91%
Natus Medical 4.20% 12.09% 8.06%

Valuation and Earnings

This table compares Edwards Lifesciences Corporation and Natus Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Edwards Lifesciences Corporation $3.23 billion 7.21 $1.05 billion $3.30 33.40
Natus Medical $445.49 million 2.94 $48.00 million $0.57 70.53

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

Summary

Edwards Lifesciences Corporation beats Natus Medical on 11 of the 15 factors compared between the two stocks.

Edwards Lifesciences Corporation 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.

Natus Medical Company Profile

Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company’s product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.

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