Pixie Dust Technologies (NASDAQ:PXDT) vs. Medtronic (NYSE:MDT) Critical Analysis

Medtronic (NYSE:MDT) and Pixie Dust Technologies (NASDAQ:PXDT) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Medtronic has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Pixie Dust Technologies has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.

Insider and Institutional Ownership

82.1% of Medtronic shares are owned by institutional investors. Comparatively, 0.4% of Pixie Dust Technologies shares are owned by institutional investors. 0.2% of Medtronic shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Medtronic and Pixie Dust Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medtronic	1	9	6	1	2.41
Pixie Dust Technologies	0	0	1	0	3.00

Medtronic currently has a consensus price target of $95.27, suggesting a potential upside of 13.47%. Pixie Dust Technologies has a consensus price target of $5.21, suggesting a potential upside of 798.28%. Given Pixie Dust Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Pixie Dust Technologies is more favorable than Medtronic.

Profitability

This table compares Medtronic and Pixie Dust Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medtronic	13.00%	13.79%	7.62%
Pixie Dust Technologies	N/A	N/A	N/A

Earnings & Valuation

This table compares Medtronic and Pixie Dust Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medtronic	$32.36 billion	3.33	$3.68 billion	$3.27	25.68
Pixie Dust Technologies	$993.02 million	0.01	-$12.53 million	N/A	N/A

Medtronic has higher revenue and earnings than Pixie Dust Technologies.

Summary

Medtronic beats Pixie Dust Technologies on 11 of the 13 factors compared between the two stocks.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

About Pixie Dust Technologies

Pixie Dust Technologies, Inc., a technology company, focuses on personal care and diversity, and workspace and digital transformation businesses primarily in Japan. It offers SonoRepro, an ultrasonic non-contact vibrotactile stimulation scalp care device; VUEVO, a series of directional voice arrival detection devices for individuals with deaf and hard-of-hearing; and kikippa, an acoustic stimulation device functioning as a desk-top speaker. The company also provides iwasemi, a sound-absorbing or sound-proofing material for architectural and interior design firms; hackke, a location positioning technology; KOTOWARI, a technology offering spatial analysis data; and magickiri, a planning services and monitoring service, which monitors human behavior and analyzes the customer's environment on the customer's behalf. In addition, it operates Pixie Nest, a membership forum, which hosts meetings and distributes information to facilitate solving social issues. The company was incorporated in 2017 and is headquartered in Tokyo, Japan.