Head-To-Head Contrast: IDEXX Laboratories (NASDAQ:IDXX) versus TransMedics Group (NASDAQ:TMDX)

TransMedics Group (NASDAQ:TMDX) and IDEXX Laboratories (NASDAQ:IDXX) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

99.7% of TransMedics Group shares are held by institutional investors. Comparatively, 87.8% of IDEXX Laboratories shares are held by institutional investors. 6.9% of TransMedics Group 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

TransMedics Group has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, IDEXX Laboratories has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Valuation & Earnings

This table compares TransMedics Group and IDEXX Laboratories”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransMedics Group	$605.49 million	4.76	$190.29 million	$3.89	21.43
IDEXX Laboratories	$4.30 billion	9.42	$1.06 billion	$14.22	36.18

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

Profitability

This table compares TransMedics Group and IDEXX Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransMedics Group	22.69%	15.88%	5.95%
IDEXX Laboratories	25.03%	71.96%	33.60%

Analyst Recommendations

This is a summary of recent ratings and price targets for TransMedics Group and IDEXX Laboratories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransMedics Group	1	6	5	0	2.33
IDEXX Laboratories	0	4	6	0	2.60

TransMedics Group currently has a consensus price target of $121.10, indicating a potential upside of 45.26%. IDEXX Laboratories has a consensus price target of $747.00, indicating a potential upside of 45.19%. Given TransMedics Group’s higher possible upside, equities research analysts plainly believe TransMedics Group is more favorable than IDEXX Laboratories.

Summary

IDEXX Laboratories beats TransMedics Group on 10 of the 14 factors compared between the two stocks.

About TransMedics Group

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity. The company was founded in 1998 and is headquartered in Andover, Massachusetts.

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.