Contrasting Edwards Lifesciences Corporation (EW) and Its Peers

Edwards Lifesciences Corporation (NYSE: EW) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its competitors? We will compare Edwards Lifesciences Corporation to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

Edwards Lifesciences Corporation has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Edwards Lifesciences Corporation’s competitors have a beta of 0.89, meaning that their average stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Edwards Lifesciences Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edwards Lifesciences Corporation 22.16% 27.17% 15.91%
Edwards Lifesciences Corporation Competitors -327.91% -35.29% -12.43%

Valuation & Earnings

This table compares Edwards Lifesciences Corporation and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Edwards Lifesciences Corporation $3.23 billion $1.05 billion 33.48
Edwards Lifesciences Corporation Competitors $2.02 billion $430.74 million -71.64

Edwards Lifesciences Corporation has higher revenue and earnings than its competitors. Edwards Lifesciences Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

82.1% of Edwards Lifesciences Corporation shares are held by institutional investors. Comparatively, 53.0% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 2.1% of Edwards Lifesciences Corporation shares are held by insiders. Comparatively, 17.2% of shares of all “Advanced Medical Equipment & Technology” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Edwards Lifesciences Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edwards Lifesciences Corporation 0 5 14 1 2.80
Edwards Lifesciences Corporation Competitors 253 1813 3253 105 2.59

Edwards Lifesciences Corporation currently has a consensus price target of $120.05, indicating a potential upside of 8.67%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 7.62%. Given Edwards Lifesciences Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Edwards Lifesciences Corporation is more favorable than its competitors.

Summary

Edwards Lifesciences Corporation beats its competitors on 11 of the 13 factors compared.

Edwards Lifesciences Corporation Company Profile

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

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