Boston Scientific, Charles Schwab: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model downgraded medical-device maker Boston Scientific(BSX Quote) to "sell."

The numbers: The company's third-quarter loss widened 52% to $94 million and the loss per share grew 66% to 6 cents. Revenue grew 2% to $2 billion. Boston Scientific's gross margin rose from 69% to 71% and its operating margin climbed from 15% to 16%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.5 reflects conservative leverage.

The stock: Boston Scientific has risen 7% this year, trailing major U.S. indices. The company has suffered from erratic operating results over the past year. Boston Scientific doesn't pay dividends.

The model upgraded California electric utility Edison International(EIX Quote) to "buy."

The numbers: Third-quarter net income decreased 11% to $403 million and earnings per share fell 7% to $1.22. Revenue dropped 15% to $3.7 billion. Edison's gross margin rose from 30% to 31%, but its operating margin decreased from 22% to 21%. A quick ratio of 0.8 indicates less-than-ideal liquidity. A debt-to-equity ratio of 1.1 reflects higher-than-ideal leverage.

The stock: Edison International has advanced 4% this year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 13, a discount to the market and electric utility peers. Shares pay a 3.7% dividend yield.

The model downgraded natural-gas transport and storage company Energy Transfer Partners(ETP Quote) to "hold."

The numbers: Fiscal third-quarter net income dropped 67% to $72 million, but the company posted a per share loss of 10 cents. Revenue fell 49% to $1.1 billion. The company's gross margin rose from 17% to 25% and its operating margin increased from 12% to 16%. A quick ratio of 0.6 indicates weak liquidity. A debt-to-equity ratio of 1.5 is higher than the industry average, demonstrating excessive leverage.