OraSure Technologies (NASDAQ:OSUR) versus DexCom (NASDAQ:DXCM) Critical Analysis

DexCom (NASDAQ:DXCM – Get Free Report) and OraSure Technologies (NASDAQ:OSUR – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Profitability

This table compares DexCom and OraSure Technologies’ net margins, return on equity and return on assets.

Insider & Institutional Ownership

97.8% of DexCom shares are held by institutional investors. Comparatively, 93.5% of OraSure Technologies shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Comparatively, 4.7% of OraSure Technologies shares are held by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DexCom and OraSure Technologies, as reported by MarketBeat.com.

DexCom currently has a consensus price target of $89.74, indicating a potential upside of 4.08%. OraSure Technologies has a consensus price target of $3.00, indicating a potential downside of 23.37%. Given DexCom’s stronger consensus rating and higher possible upside, analysts clearly believe DexCom is more favorable than OraSure Technologies.

Volatility and Risk

DexCom has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, OraSure Technologies has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares DexCom and OraSure Technologies”s gross revenue, earnings per share and valuation.

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

Summary

DexCom beats OraSure Technologies on 14 of the 15 factors compared between the two stocks.

About DexCom

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DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.

About OraSure Technologies

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OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.