Three Reasons to Sell MAKO Surgical Corp. (MAKO) Today

But there are two big differences between Intuitive and MAKO Surgical Corp. (NASDAQ:MAKO). The first is that Intuitive’s da Vinci likely has many more possible functions beyond its two core procedures. It is really the only soft-tissue robotic play on the market. MAKO’s RIO deals more with precision cutting on bone replacements. Those are two very different functions, with divergent avenues for growth.

The second major difference is that the medical community has largely accepted the da Vinci. At the end of 2012, there were 2,585 da Vinci systems in use worldwide, and they performed 450,000 procedures during the year.

MAKO, on the other hand, had only 156 RIO systems in place at year’s end, which had performed only 10,204 procedures during 2012. That’s a big difference.

3. The company is not yet profitable
Given that management hasn’t been able to provide accurate forecasts, and the company’s adoption rates aren’t totally encouraging, investors should be aware that MAKO Surgical Corp. (NASDAQ:MAKO) also has yet to turn a profit. In fact, management states: “We expect to continue to incur significant operating losses as we increase our sales and marketing activities and otherwise continue to invest capital in the development and expansion of our products.”

That’s an important factor take into consideration before putting your own money into the stock.

What I’ll be doing
At the end of the year, I’ll be reviewing whether MAKO will stay in my Roth IRA. Given that it’s such a tiny part of my overall holdings, I see little downside and lots of potential upside should MAKO prove to be a serious value-add for hospitals and patients alike.

The article 3 Reasons to Sell MAKO Surgical Today originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel owns shares of MAKO Surgical and Intuitive Surgical. The Motley Fool recommends Intuitive Surgical and MAKO Surgical. The Motley Fool owns shares of Intuitive Surgical.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.