Reviewing Masimo (NASDAQ:MASI) & ReShape Lifesciences (NASDAQ:RSLSD)

Masimo (NASDAQ:MASI) and ReShape Lifesciences (OTCMKTS:RSLSD) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Masimo and ReShape Lifesciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masimo 0 2 5 0 2.71
ReShape Lifesciences 0 0 0 0 N/A

Masimo currently has a consensus target price of $208.33, suggesting a potential downside of 15.55%.

Institutional and Insider Ownership

82.8% of Masimo shares are held by institutional investors. 11.5% of Masimo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Masimo and ReShape Lifesciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masimo 21.66% 17.05% 14.39%
ReShape Lifesciences -668.58% -163.22% -52.10%

Valuation & Earnings

This table compares Masimo and ReShape Lifesciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masimo $937.84 million 14.23 $196.22 million $3.22 76.61
ReShape Lifesciences $610,000.00 0.00 -$81.15 million N/A N/A

Masimo has higher revenue and earnings than ReShape Lifesciences.

Volatility & Risk

Masimo has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, ReShape Lifesciences has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Summary

Masimo beats ReShape Lifesciences on 8 of the 9 factors compared between the two stocks.

Masimo Company Profile

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies worldwide. The company offers Masimo Signal Extraction Technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. In addition, the company offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, and handheld capnograph and capnometer devices; and O3 regional oximetry for tissue oxygen saturation measurement. Further, it provides Patient SafetyNet, a surveillance, remote monitoring, and clinician notification solution; MyView, a wireless presence-detection system; and connectivity devices. Additionally, the company offers Trace, a patient data visualization and reporting software that monitors Masimo Root and Radical-7. The company provides its products directly, as well as through distributors and original equipment manufacturers partners to hospitals, emergency medical service providers, physician offices, long term care facilities, veterinarians and consumers. Masimo Corporation was founded in 1989 and is headquartered in Irvine, California.

ReShape Lifesciences Company Profile

ReShape Lifesciences Inc., a medical device company, focuses on the design, development, and commercialization of technology to treat obesity, metabolic diseases, and other gastrointestinal disorders. The company's product portfolio includes ReShape vBloc, a therapy that enables patients to feel full and eat less by intermittently blocking hunger signals on the vagus nerve; ReShape Vest system, an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach to enable weight loss in obese and morbidly obese patients without permanently changing patient anatomy; and Lap-Band System, a minimally invasive long-term treatment of severe obesity and more invasive surgical stapling procedures, such as the gastric bypass or sleeve gastrectomy. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in October 2017. ReShape Lifesciences Inc. was founded in 2002 and is headquartered in San Clemente, California.

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