Critical Survey: Insulet (NASDAQ:PODD) and PROCEPT BioRobotics (NASDAQ:PRCT)

PROCEPT BioRobotics (NASDAQ:PRCT) and Insulet (NASDAQ:PODD) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares PROCEPT BioRobotics and Insulet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$136.19 million	27.42	-$105.90 million	($1.95)	-36.70
Insulet	$1.70 billion	11.57	$206.30 million	$5.84	47.95

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

Profitability

This table compares PROCEPT BioRobotics and Insulet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-50.07%	-38.57%	-26.06%
Insulet	21.22%	27.98%	9.16%

Analyst Recommendations

This is a breakdown of current recommendations for PROCEPT BioRobotics and Insulet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	0	1	6	0	2.86
Insulet	0	3	13	0	2.81

PROCEPT BioRobotics presently has a consensus price target of $97.86, indicating a potential upside of 36.73%. Insulet has a consensus price target of $272.81, indicating a potential downside of 2.58%. Given PROCEPT BioRobotics’ stronger consensus rating and higher probable upside, analysts plainly believe PROCEPT BioRobotics is more favorable than Insulet.

Insider & Institutional Ownership

89.5% of PROCEPT BioRobotics shares are owned by institutional investors. 17.4% of PROCEPT BioRobotics shares are owned by insiders. Comparatively, 0.5% of Insulet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

PROCEPT BioRobotics has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Insulet has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Summary

Insulet beats PROCEPT BioRobotics on 9 of the 14 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.