DexCom vs Medtronic Which Outperforms?

DexCom and Medtronic are two leading companies in the medical device sector, both specializing in diabetes management products. DexCom is known for its continuous glucose monitoring systems, which provide real-time data to help individuals with diabetes manage their blood sugar levels. Medtronic, on the other hand, offers a range of diabetes management products, including insulin pumps and continuous glucose monitoring systems. Both companies have seen strong growth in recent years, but their stocks have distinct characteristics that investors should consider.

DexCom or Medtronic?

When comparing DexCom and Medtronic, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DexCom and Medtronic.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DexCom has a dividend yield of -%, while Medtronic has a dividend yield of 3.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DexCom reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Medtronic reports a 5-year dividend growth of 13.50% year and a payout ratio of 92.84%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DexCom P/E ratio at 40.71 and Medtronic's P/E ratio at 29.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DexCom P/B ratio is 14.01 while Medtronic's P/B ratio is 2.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DexCom has seen a 5-year revenue growth of 2.21%, while Medtronic's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DexCom's ROE at 31.20% and Medtronic's ROE at 7.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $69.66 for DexCom and $87.75 for Medtronic. Over the past year, DexCom's prices ranged from $62.34 to $142.00, with a yearly change of 127.78%. Medtronic's prices fluctuated between $71.64 and $92.68, with a yearly change of 29.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.