Cardiovascular Systems (NASDAQ:CSII) and Irhythm Technologies (NASDAQ:IRTC) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Earnings and Valuation

This table compares Cardiovascular Systems and Irhythm Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardiovascular Systems $217.04 million 5.56 $1.71 million $0.05 695.40
Irhythm Technologies $98.51 million 21.06 -$29.42 million ($1.30) -66.65

Cardiovascular Systems has higher revenue and earnings than Irhythm Technologies. Irhythm Technologies is trading at a lower price-to-earnings ratio than Cardiovascular Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cardiovascular Systems and Irhythm Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardiovascular Systems 0.79% 1.36% 0.88%
Irhythm Technologies -34.38% -53.59% -32.15%

Analyst Recommendations

This is a breakdown of recent ratings for Cardiovascular Systems and Irhythm Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardiovascular Systems 0 3 4 0 2.57
Irhythm Technologies 0 3 6 0 2.67

Cardiovascular Systems currently has a consensus target price of $37.00, indicating a potential upside of 6.41%. Irhythm Technologies has a consensus target price of $94.14, indicating a potential upside of 8.66%. Given Irhythm Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Irhythm Technologies is more favorable than Cardiovascular Systems.

Institutional and Insider Ownership

84.6% of Cardiovascular Systems shares are held by institutional investors. 3.3% of Cardiovascular Systems shares are held by insiders. Comparatively, 5.1% of Irhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Cardiovascular Systems has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Irhythm Technologies has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Cardiovascular Systems beats Irhythm Technologies on 9 of the 14 factors compared between the two stocks.

Cardiovascular Systems Company Profile

Cardiovascular Systems, Inc., a medical device company, develops, manufactures, and commercializes various devices to treat vascular and coronary diseases in the United States. The company offers peripheral arterial disease products, including Diamondback 360 Peripheral, Predator 360, Stealth 360 Peripheral Orbital Atherectomy System (OAS), Diamondback 360 60cm Peripheral OAS, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral, Diamondback 360 2.00 Peripheral, Diamondback 360 200cm Peripheral, and Diamondback 360 180cm Peripheral, which are catheter-based platforms for treating a range of plaque types in leg arteries above and below the knee, including calcified plaque, as well as address various limitations associated with surgical, catheter, and pharmacological treatment alternatives. It also provides Diamondback 360 Coronary OAS, an atherectomy device for the treatment of calcified coronary arteries. Cardiovascular Systems, Inc. was founded in 1989 and is headquartered in St. Paul, Minnesota.

Irhythm Technologies Company Profile

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. Its Zio XT monitor, a single-use, wire-free, and wearable patch-based biosensor, records patient's heartbeats and ECG data. The company was founded in 2006 and is headquartered in San Francisco, California.

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