Head to Head Comparison: Teleflex (NYSE:TFX) and TransMedics Group (NASDAQ:TMDX)

Teleflex (NYSE:TFX) and TransMedics Group (NASDAQ:TMDX) are both mid-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teleflex	4.96%	14.73%	8.79%
TransMedics Group	10.03%	21.88%	6.15%

Volatility & Risk

Teleflex has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teleflex	$3.05 billion	1.74	$69.68 million	$3.17	37.82
TransMedics Group	$441.54 million	9.86	$35.46 million	$1.36	94.65

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

Institutional & Insider Ownership

95.6% of Teleflex shares are held by institutional investors. Comparatively, 99.7% of TransMedics Group shares are held by institutional investors. 1.4% of Teleflex shares are held by company insiders. Comparatively, 7.0% of TransMedics Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Teleflex and TransMedics Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teleflex	1	8	2	0	2.09
TransMedics Group	0	3	6	1	2.80

Teleflex currently has a consensus price target of $164.63, indicating a potential upside of 37.30%. TransMedics Group has a consensus price target of $127.33, indicating a potential downside of 1.08%. Given Teleflex’s higher possible upside, equities research analysts plainly believe Teleflex is more favorable than TransMedics Group.

Summary

TransMedics Group beats Teleflex on 10 of the 15 factors compared between the two stocks.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.

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.