IDEXX Laboratories (NASDAQ:IDXX – Get Free Report) and Neuronetics (NASDAQ:STIM – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Institutional & Insider Ownership
87.8% of IDEXX Laboratories shares are held by institutional investors. Comparatively, 53.6% of Neuronetics shares are held by institutional investors. 1.0% of IDEXX Laboratories shares are held by insiders. Comparatively, 9.8% of Neuronetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for IDEXX Laboratories and Neuronetics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IDEXX Laboratories | 0 | 3 | 8 | 0 | 2.73 |
| Neuronetics | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares IDEXX Laboratories and Neuronetics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IDEXX Laboratories | 24.65% | 67.78% | 31.08% |
| Neuronetics | -33.88% | -131.15% | -31.26% |
Valuation and Earnings
This table compares IDEXX Laboratories and Neuronetics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IDEXX Laboratories | $3.90 billion | 14.38 | $887.87 million | $12.61 | 55.68 |
| Neuronetics | $74.89 million | 1.41 | -$43.71 million | ($0.82) | -1.88 |
IDEXX Laboratories has higher revenue and earnings than Neuronetics. Neuronetics is trading at a lower price-to-earnings ratio than IDEXX Laboratories, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
IDEXX Laboratories has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Neuronetics has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Summary
IDEXX Laboratories beats Neuronetics on 12 of the 14 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 Neuronetics
Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. The company was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
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