Financial Analysis: PROCEPT BioRobotics (NASDAQ:PRCT) and IDEXX Laboratories (NASDAQ:IDXX)

PROCEPT BioRobotics (NASDAQ:PRCT) and IDEXX Laboratories (NASDAQ:IDXX) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for PROCEPT BioRobotics and IDEXX Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	0	1	8	0	2.89
IDEXX Laboratories	0	3	6	1	2.80

PROCEPT BioRobotics currently has a consensus price target of $73.22, indicating a potential upside of 80.00%. IDEXX Laboratories has a consensus price target of $649.44, indicating a potential upside of 1.00%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, research analysts plainly believe PROCEPT BioRobotics is more favorable than IDEXX Laboratories.

Volatility & Risk

PROCEPT BioRobotics has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, IDEXX Laboratories has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 87.8% of IDEXX Laboratories shares are held by institutional investors. 6.6% of PROCEPT BioRobotics shares are held by company insiders. Comparatively, 1.0% of IDEXX Laboratories shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares PROCEPT BioRobotics and IDEXX Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-30.60%	-23.73%	-17.34%
IDEXX Laboratories	24.41%	64.42%	29.89%

Earnings & Valuation

This table compares PROCEPT BioRobotics and IDEXX Laboratories”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$224.50 million	10.08	-$91.41 million	($1.55)	-26.25
IDEXX Laboratories	$3.90 billion	13.20	$887.87 million	$12.01	53.54

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

Summary

IDEXX Laboratories beats PROCEPT BioRobotics on 10 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

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.