Financial Contrast: Treace Medical Concepts (NASDAQ:TMCI) versus TransMedics Group (NASDAQ:TMDX)

Treace Medical Concepts (NASDAQ:TMCI) and TransMedics Group (NASDAQ:TMDX) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Treace Medical Concepts and TransMedics Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-28.99%	-71.37%	-30.49%
TransMedics Group	22.69%	15.88%	5.95%

Valuation and Earnings

This table compares Treace Medical Concepts and TransMedics Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	1.37	-$59.00 million	($0.93)	-4.83
TransMedics Group	$605.49 million	4.93	$190.29 million	$3.89	22.22

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

Analyst Ratings

This is a summary of recent ratings and price targets for Treace Medical Concepts and TransMedics Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
TransMedics Group	1	6	5	0	2.33

Treace Medical Concepts presently has a consensus price target of $5.17, indicating a potential upside of 15.14%. TransMedics Group has a consensus price target of $121.10, indicating a potential upside of 40.13%. Given TransMedics Group’s stronger consensus rating and higher probable upside, analysts clearly believe TransMedics Group is more favorable than Treace Medical Concepts.

Institutional & Insider Ownership

84.1% of Treace Medical Concepts shares are owned by institutional investors. Comparatively, 99.7% of TransMedics Group shares are owned by institutional investors. 23.4% of Treace Medical Concepts shares are owned by company insiders. Comparatively, 6.9% of TransMedics Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Treace Medical Concepts has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.

Summary

TransMedics Group beats Treace Medical Concepts on 13 of the 14 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

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.