Do They Have A Competitive Advantage?

They do not.

Dexcom's primary competitor is Abbott Laboratories (ABT) who are not solely focused on diabetes care (ABT also makes products for nutrition, medicine, cardiovascular, and more). While some comparisons are similar, few of DXCM's historical growth rates and numbers outshine ABT.

Dexcom (DXCM) compared to Abbott Laboratories (ABT):

Lower market cap ($23.80B vs $214.97B)

Higher P/E (42.87 vs 16.35)

Lower Current Ratio (1.47 vs 1.67)

Higher Debt to Equity (1.19 vs 0.3)

Revenue: higher 9, 5, and 1 year growth rates

Net income: lower 1 year growth rate / comparable 5 year CAGR / can't compare 9 year CAGR due to DXCM having a negative net income that year

Equity: Lower 1 year growth rate but higher 5 and 9 year CAGRs

FCF: Higher 9 and 5 year CAGRs, comparable 1 year growth rate

Gross Profit Margin: slightly higher (consistently in the 60%s vs the 50%s)

Operating income: has only been positive for 5/6 years compared with full decade at ABT

Bottom line: Lower 1 year growth rate / higher 5 year / can't compare 9 year CAGR due to DXCM having a negative net income that year

EPS: lower overall growth rates

DXCM has more cash on hand relative to operating expenses (DXCM has approximately 4 months of operating expenses in cash vs 5-6 months at ABT)

Similar timelines for paying off long term debts

Fewer total assets compared to total liabilities (~$6.5B to ~$4.5B vs ~$81B to ~$33B)

Shareholders equity growth rate is similar