Analyzing TransMedics Group (NASDAQ:TMDX) and Echo Therapeutics (NASDAQ:ECTE)

TransMedics Group (NASDAQ:TMDX) and Echo Therapeutics (OTCMKTS:ECTE) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

70.6% of TransMedics Group shares are owned by institutional investors. 13.1% of TransMedics Group shares are owned by insiders. Comparatively, 7.0% of Echo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TransMedics Group and Echo Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransMedics Group 0 1 3 0 2.75
Echo Therapeutics 0 0 0 0 N/A

TransMedics Group presently has a consensus price target of $22.00, suggesting a potential upside of 22.77%. Given TransMedics Group’s higher possible upside, equities research analysts clearly believe TransMedics Group is more favorable than Echo Therapeutics.

Profitability

This table compares TransMedics Group and Echo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransMedics Group -134.19% -60.19% -32.58%
Echo Therapeutics N/A N/A N/A

Earnings and Valuation

This table compares TransMedics Group and Echo Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransMedics Group $23.60 million 16.22 -$33.55 million ($2.36) -7.59
Echo Therapeutics N/A N/A N/A N/A N/A

Echo Therapeutics has lower revenue, but higher earnings than TransMedics Group.

Summary

TransMedics Group beats Echo Therapeutics on 5 of the 8 factors compared between the two stocks.

About TransMedics Group

TransMedics, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients across multiple disease states. The company offers Organ Care System (OCS), an integrated, compact, portable preservation technology that addresses unmet need for organs for transplantation. Its Organ Care System preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure. Its Organ Care System incudes OCS LUNG, a portable perfusion, ventilation, and monitoring system that maintains organs in a near physiologic state and enables surgeons to perfuse and ventilate the organ between the donor and recipient sites; OCS Heart, a portable heart perfusion system that helps to maintain organs in a warm functioning state outside of the body; and OCS Liver, a portable perfusion and monitoring system that maintains organs in a near physiologic state. The company offers its products in the United States and internationally. TransMedics, Inc. is headquartered in Andover, Massachusetts. TransMedics, Inc. is a subsidiary of Transmedics Group, Inc.

About Echo Therapeutics

Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.

Receive News & Ratings for TransMedics Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TransMedics Group and related companies with MarketBeat.com's FREE daily email newsletter.