Edwards Lifesciences Corporation (NYSE: EW) and Illumina (NASDAQ:ILMN) are both large-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
Edwards Lifesciences Corporation has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Illumina has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Institutional & Insider Ownership
82.1% of Edwards Lifesciences Corporation shares are owned by institutional investors. Comparatively, 93.3% of Illumina shares are owned by institutional investors. 2.1% of Edwards Lifesciences Corporation shares are owned by company insiders. Comparatively, 1.6% of Illumina shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Edwards Lifesciences Corporation and Illumina’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Edwards Lifesciences Corporation||$3.23 billion||7.27||$1.05 billion||$3.30||33.72|
|Illumina||$2.49 billion||12.02||$666.78 million||$5.10||40.19|
Edwards Lifesciences Corporation has higher revenue and earnings than Illumina. Edwards Lifesciences Corporation is trading at a lower price-to-earnings ratio than Illumina, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Edwards Lifesciences Corporation and Illumina, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Edwards Lifesciences Corporation||0||5||14||1||2.80|
Edwards Lifesciences Corporation presently has a consensus target price of $120.05, suggesting a potential upside of 7.88%. Illumina has a consensus target price of $179.15, suggesting a potential downside of 12.59%. Given Edwards Lifesciences Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Edwards Lifesciences Corporation is more favorable than Illumina.
This table compares Edwards Lifesciences Corporation and Illumina’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%|
Edwards Lifesciences Corporation beats Illumina on 9 of the 15 factors compared between the two stocks.
About Edwards Lifesciences Corporation
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.
Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.
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