Analyzing AtriCure (ATRC) and Inogen (INGN)

AtriCure (NASDAQ: ATRC) and Inogen (NASDAQ:INGN) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

87.9% of AtriCure shares are owned by institutional investors. Comparatively, 99.6% of Inogen shares are owned by institutional investors. 11.9% of AtriCure shares are owned by company insiders. Comparatively, 5.3% of Inogen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares AtriCure and Inogen’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AtriCure $155.11 million 4.04 -$33.33 million ($1.02) -17.84
Inogen $202.83 million 12.52 $20.51 million $1.23 98.89

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

Analyst Recommendations

This is a summary of current ratings and target prices for AtriCure and Inogen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 1 6 0 2.86
Inogen 0 3 2 1 2.67

AtriCure currently has a consensus target price of $25.00, suggesting a potential upside of 37.36%. Inogen has a consensus target price of $98.50, suggesting a potential downside of 19.02%. Given AtriCure’s stronger consensus rating and higher probable upside, equities analysts clearly believe AtriCure is more favorable than Inogen.

Profitability

This table compares AtriCure and Inogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AtriCure -19.40% -20.28% -12.20%
Inogen 11.36% 13.37% 11.16%

Risk and Volatility

AtriCure has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Inogen has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Summary

Inogen beats AtriCure on 10 of the 14 factors compared between the two stocks.

AtriCure Company Profile

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

Inogen Company Profile

Inogen, Inc. is a medical technology company. The Company develops, manufactures and markets portable oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The Company’s Inogen One systems concentrate the air around the patient to offer a single source of supplemental oxygen anytime, anywhere with a portable device. Its three portable product offerings, the Inogen One G4, Inogen One G3 and Inogen One G2, at approximately 2.8, 4.8 and 7.0 pounds with a single battery, respectively. Its Inogen One G4, Inogen One G3 and Inogen One G2 are sub-3, sub-5 and sub-10 pound portable oxygen concentrators, respectively. All of its Inogen One systems are equipped with Intelligent Delivery Technology. The Inogen At Home stationary oxygen concentrator allows it to access the non-ambulatory oxygen patient market and serves as a backup to its Inogen One system for ambulatory patients on its rental service.

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