Financial Analysis: CONMED (CNMD) vs. Aradigm (ARDM)

CONMED (NASDAQ:CNMD) and Aradigm (NASDAQ:ARDM) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

96.1% of CONMED shares are held by institutional investors. Comparatively, 30.0% of Aradigm shares are held by institutional investors. 3.1% of CONMED shares are held by insiders. Comparatively, 4.5% of Aradigm shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CONMED and Aradigm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CONMED 8.85% 9.51% 4.40%
Aradigm -244.15% N/A -240.23%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CONMED and Aradigm, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONMED 0 3 1 0 2.25
Aradigm 0 1 0 0 2.00

CONMED currently has a consensus price target of $70.00, suggesting a potential downside of 6.14%. Given CONMED’s stronger consensus rating and higher possible upside, analysts plainly believe CONMED is more favorable than Aradigm.

Valuation & Earnings

This table compares CONMED and Aradigm’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CONMED $796.39 million 2.63 $55.48 million $1.89 39.46
Aradigm $14.47 million 1.47 -$10.70 million ($0.72) -1.94

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

Risk and Volatility

CONMED has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Aradigm has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Dividends

CONMED pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Aradigm does not pay a dividend. CONMED pays out 42.3% of its earnings in the form of a dividend.

Summary

CONMED beats Aradigm on 13 of the 16 factors compared between the two stocks.

CONMED Company Profile

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for minimally invasive procedures in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers orthopedic surgery products, including sports medicine products comprising powered resection instruments, arthroscopes, reconstructive systems, tissue repair sets, and metal and bioabsorbable implants, as well as related disposable products and fluid management systems; powered surgical instruments for use in bone orthopedic, arthroscopic, oral/maxillofacial, podiatric, plastic, ENT, neurological, spinal, and cardiothoracic surgeries; sports biologics and tissue products; and surgical visualization products. It offers orthopedic surgery products under Hall, CONMED Linvatec, Concept, and Shutt brands. The company also offers general surgery product in the areas of advanced surgical comprising clinical insufflation system; electrosurgical products; endomechanical products comprising instruments, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors; and uterine manipulator (VCARE) for use in increasing the efficiency of laparoscopic hysterectomies and other gynecologic laparoscopic procedures. In addition, it offers general surgery product in the areas of endoscopic technologies, including minimally invasive diagnostic and therapeutic products; critical care products cover a line of vital signs, cardiac monitoring, and patient care products, including ECG electrodes and accessories, cardiac defibrillation and pacing pads, and suction instruments and tubing; and physician's office electrosurgical product used by dermatologists. The company's products are used by surgeons and physicians in orthopedics, general surgery, gynecology, neurosurgery, and gastroenterology. CONMED Corporation was founded in 1970 and is headquartered in Utica, New York.

Aradigm Company Profile

Aradigm Corp. operates as a pharmaceutical company, which focuses on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases by pulmonologists. Its technologies include diabetes and pain management, AERx essence devices. The company was founded in 1991 and is headquartered in Hayward, CA.

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