Reviewing IDEXX Laboratories (NASDAQ:IDXX) & Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and IDEXX Laboratories (NASDAQ:IDXX) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Spectral AI and IDEXX Laboratories, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	1	2.67
IDEXX Laboratories	0	4	6	0	2.60

Spectral AI presently has a consensus target price of $4.00, indicating a potential upside of 156.41%. IDEXX Laboratories has a consensus target price of $747.00, indicating a potential upside of 47.47%. Given Spectral AI’s stronger consensus rating and higher probable upside, research analysts plainly believe Spectral AI is more favorable than IDEXX Laboratories.

Profitability

This table compares Spectral AI and IDEXX Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-69.27%	N/A	-78.56%
IDEXX Laboratories	25.03%	71.96%	33.60%

Earnings & Valuation

This table compares Spectral AI and IDEXX Laboratories”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$19.65 million	2.56	-$7.57 million	($0.35)	-4.46
IDEXX Laboratories	$4.30 billion	9.27	$1.06 billion	$14.22	35.62

IDEXX Laboratories has higher revenue and earnings than Spectral AI. Spectral AI is trading at a lower price-to-earnings ratio than IDEXX Laboratories, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Spectral AI has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, IDEXX Laboratories has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 87.8% of IDEXX Laboratories shares are held by institutional investors. 13.7% of Spectral AI shares are held by company insiders. Comparatively, 0.8% of IDEXX Laboratories shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

IDEXX Laboratories beats Spectral AI on 11 of the 15 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About IDEXX Laboratories

IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. Additionally, the company offers human medical point-of-care products and laboratory diagnostics services. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.