Comparing Fractyl Health (NASDAQ:GUTS) & DexCom (NASDAQ:DXCM)

Fractyl Health (NASDAQ:GUTS) and DexCom (NASDAQ:DXCM) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

97.8% of DexCom shares are held by institutional investors. 0.3% of DexCom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Fractyl Health and DexCom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fractyl Health	0	0	3	0	3.00
DexCom	0	6	11	1	2.72

Fractyl Health currently has a consensus price target of $22.00, indicating a potential upside of 448.63%. DexCom has a consensus price target of $111.50, indicating a potential upside of 59.97%. Given Fractyl Health’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fractyl Health is more favorable than DexCom.

Earnings & Valuation

This table compares Fractyl Health and DexCom’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fractyl Health	$120,000.00	1,600.66	-$77.09 million	N/A	N/A
DexCom	$3.62 billion	7.71	$541.50 million	$1.55	44.97

DexCom has higher revenue and earnings than Fractyl Health.

Profitability

This table compares Fractyl Health and DexCom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fractyl Health	N/A	N/A	N/A
DexCom	16.95%	31.41%	10.84%

Summary

DexCom beats Fractyl Health on 9 of the 12 factors compared between the two stocks.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.

About DexCom

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.