iRhythm Technologies (NASDAQ:IRTC) and Teleflex (NYSE:TFX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Profitability
This table compares iRhythm Technologies and Teleflex's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| iRhythm Technologies | -28.50% | -50.23% | -22.26% |
| Teleflex | 18.99% | 17.15% | 7.91% |
Valuation and Earnings
This table compares iRhythm Technologies and Teleflex's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| iRhythm Technologies | $214.55 million | 31.79 | $-54,570,000.00 | ($2.16) | -109.38 |
| Teleflex | $2.60 billion | 6.70 | $461.47 million | $11.15 | 33.47 |
Teleflex has higher revenue and earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than Teleflex, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
iRhythm Technologies has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Teleflex has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for iRhythm Technologies and Teleflex, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| iRhythm Technologies | 0 | 3 | 8 | 0 | 2.73 |
| Teleflex | 0 | 1 | 9 | 1 | 3.00 |
iRhythm Technologies currently has a consensus target price of $215.80, indicating a potential downside of 8.66%. Teleflex has a consensus target price of $384.6364, indicating a potential upside of 3.08%. Given Teleflex's stronger consensus rating and higher probable upside, analysts plainly believe Teleflex is more favorable than iRhythm Technologies.
Institutional & Insider Ownership
91.3% of Teleflex shares are owned by institutional investors. 3.1% of iRhythm Technologies shares are owned by insiders. Comparatively, 2.2% of Teleflex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Teleflex beats iRhythm Technologies on 12 of the 15 factors compared between the two stocks.
