Financial Analysis: IDEXX Laboratories (NASDAQ:IDXX) versus Spectral AI (NASDAQ:MDAI)

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

Insider & Institutional Ownership

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

Earnings and Valuation

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

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

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.

Profitability

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

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

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current recommendations for IDEXX Laboratories and Spectral AI, as provided by MarketBeat.com.

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

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

Summary

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

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.

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.