Head-To-Head Analysis: Akili (NASDAQ:AKLI) and DexCom (NASDAQ:DXCM)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DexCom	$3.62 billion	12.26	$541.50 million	$1.55	72.04
Akili	$1.95 million	17.46	-$59.49 million	($0.61)	-0.71

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

Analyst Ratings

This is a breakdown of current recommendations for DexCom and Akili, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DexCom	0	3	11	1	2.87
Akili	0	0	1	0	3.00

DexCom presently has a consensus target price of $139.33, indicating a potential upside of 24.78%. Akili has a consensus target price of $4.00, indicating a potential upside of 825.93%. Given Akili’s stronger consensus rating and higher probable upside, analysts plainly believe Akili is more favorable than DexCom.

Volatility and Risk

DexCom has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Akili has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DexCom	16.82%	31.01%	10.29%
Akili	-2,492.04%	-79.93%	-59.16%

Insider & Institutional Ownership

97.8% of DexCom shares are owned by institutional investors. Comparatively, 53.1% of Akili shares are owned by institutional investors. 0.3% of DexCom shares are owned by insiders. Comparatively, 10.1% of Akili shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

DexCom beats Akili on 10 of the 15 factors compared between the two stocks.

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.

About Akili

Akili, Inc., a digital medicine company, develops cognitive treatments through game-changing technologies. The company provides EndeavorRx, a computer-based testing for cognitive dysfunction across several neurology and psychiatry indications, including attention-deficit hyperactivity disorder, depressive disorder, autism spectrum disorder, multiple sclerosis, and other neuroinflammatory diseases. It also offers selective stimulus management engine mechanism to activate the fronto-parietal cortex area in the brain; body brain trainer for attention, impulsivity, working memory, and goal management; and spatial navigation engine for spatial navigation, memory, and planning and organization. The company was founded in 2011 and is headquartered in Boston, Massachusetts.