InfuSystem (NYSE:INFU) & Insulet (NASDAQ:PODD) Critical Contrast

InfuSystem (NYSE:INFU) and Insulet (NASDAQ:PODD) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for InfuSystem and Insulet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InfuSystem	0	0	0	2	4.00
Insulet	0	3	11	0	2.79

InfuSystem currently has a consensus price target of $13.00, indicating a potential upside of 110.70%. Insulet has a consensus price target of $242.29, indicating a potential upside of 4.65%. Given InfuSystem’s stronger consensus rating and higher probable upside, analysts plainly believe InfuSystem is more favorable than Insulet.

Volatility & Risk

InfuSystem has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Insulet has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InfuSystem	$129.37 million	1.02	$870,000.00	$0.01	617.00
Insulet	$1.87 billion	8.67	$206.30 million	$5.50	42.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InfuSystem	0.28%	0.70%	0.35%
Insulet	21.11%	30.73%	9.10%

Insider and Institutional Ownership

71.1% of InfuSystem shares are held by institutional investors. 10.2% of InfuSystem shares are held by company insiders. Comparatively, 0.5% of Insulet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Insulet beats InfuSystem on 8 of the 15 factors compared between the two stocks.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

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.