Critical Survey: Outset Medical (OM) versus Its Rivals

Outset Medical (NASDAQ: OM) is one of 65 publicly-traded companies in the “Electromedical equipment” industry, but how does it weigh in compared to its competitors? We will compare Outset Medical to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

This table compares Outset Medical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Outset Medical N/A N/A N/A
Outset Medical Competitors -248.11% -29.16% -15.64%

Institutional and Insider Ownership

83.5% of Outset Medical shares are held by institutional investors. Comparatively, 47.7% of shares of all “Electromedical equipment” companies are held by institutional investors. 12.9% of shares of all “Electromedical equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Outset Medical and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Outset Medical $49.94 million -$121.49 million -9.95
Outset Medical Competitors $999.91 million $94.29 million 136.92

Outset Medical’s competitors have higher revenue and earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Outset Medical and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Outset Medical 0 3 5 0 2.63
Outset Medical Competitors 211 883 1677 37 2.55

Outset Medical currently has a consensus target price of $58.20, indicating a potential upside of 20.55%. As a group, “Electromedical equipment” companies have a potential upside of 16.41%. Given Outset Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Outset Medical is more favorable than its competitors.

Summary

Outset Medical beats its competitors on 7 of the 12 factors compared.

About Outset Medical

Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. It offers Tablo Hemodialysis System, which comprises of a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

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