Reviewing Cytosorbents (CTSO) and ResMed (RMD)

Cytosorbents (NYSE: RMD) and ResMed (NYSE:RMD) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Cytosorbents does not pay a dividend. ResMed pays out 39.7% of its earnings in the form of a dividend. ResMed has increased its dividend for 2 consecutive years.

Profitability

This table compares Cytosorbents and ResMed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytosorbents -74.60% -100.51% -51.13%
ResMed 13.49% 24.74% 14.85%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cytosorbents and ResMed, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytosorbents 0 0 4 0 3.00
ResMed 3 5 3 0 2.00

Cytosorbents presently has a consensus price target of $13.31, suggesting a potential upside of 16.78%. ResMed has a consensus price target of $68.80, suggesting a potential downside of 35.60%. Given Cytosorbents’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Cytosorbents is more favorable than ResMed.

Risk & Volatility

Cytosorbents has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

13.6% of Cytosorbents shares are owned by institutional investors. Comparatively, 62.7% of ResMed shares are owned by institutional investors. 6.9% of Cytosorbents shares are owned by company insiders. Comparatively, 1.8% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cytosorbents $15.15 million 23.67 -$8.46 million ($0.32) -35.63
ResMed $2.34 billion 6.52 $315.58 million $3.53 30.27

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

Summary

ResMed beats Cytosorbents on 11 of the 17 factors compared between the two stocks.

Cytosorbents Company Profile

Cytosorbents Corporation, a critical care focused immunotherapy company, engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology worldwide. The company's flagship product is CytoSorb device, an extracorporeal cytokine filter designed for the adjunctive therapy in the treatment of sepsis; adjunctive therapy in other critical care applications; prevention and treatment of post-operative complications of cardiopulmonary bypass surgery; and prevention and treatment of organ dysfunction in brain-dead organ donors to increase the number and quality of viable organs harvested from donors. It also provides VetResQ device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. In addition, the company develops CytoSorb-XL device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. Further, it is involved in the development of BetaSorb device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; and DrugSorb, an extracorporeal hemoperfusion cartridge designed to remove toxic chemicals from the blood. The company was formerly known as MedaSorb Technologies Corporation and changed its name to CytoSorbents Corporation in May 2010. The company was founded in 1997 and is based in Monmouth Junction, New Jersey.

ResMed Company Profile

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; and data communications and control products, such as EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules that facilitate the transfer of data and other information to and from the flow generators. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

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