Reviewing TransMedics Group (NASDAQ:TMDX) & LENSAR (NASDAQ:LNSR)

TransMedics Group (NASDAQ:TMDX) and LENSAR (NASDAQ:LNSR) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

99.7% of TransMedics Group shares are held by institutional investors. Comparatively, 40.2% of LENSAR shares are held by institutional investors. 7.0% of TransMedics Group shares are held by company insiders. Comparatively, 38.5% of LENSAR shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TransMedics Group	13.49%	28.02%	8.64%
LENSAR	-84.49%	-737.30%	-72.60%

Valuation & Earnings

This table compares TransMedics Group and LENSAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransMedics Group	$441.54 million	9.35	$35.46 million	$1.93	62.75
LENSAR	$53.49 million	2.77	-$31.40 million	($4.21)	-2.95

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

Risk & Volatility

TransMedics Group has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for TransMedics Group and LENSAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransMedics Group	0	4	6	1	2.73
LENSAR	0	2	0	0	2.00

TransMedics Group presently has a consensus target price of $125.40, indicating a potential upside of 3.55%. LENSAR has a consensus target price of $15.00, indicating a potential upside of 20.97%. Given LENSAR’s higher possible upside, analysts clearly believe LENSAR is more favorable than TransMedics Group.

Summary

TransMedics Group beats LENSAR on 13 of the 15 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 LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.