Critical Review: Mesa Laboratories (NASDAQ:MLAB) and Hologic (NASDAQ:HOLX)

Mesa Laboratories (NASDAQ:MLAB) and Hologic (NASDAQ:HOLX) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

Mesa Laboratories has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Hologic has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mesa Laboratories and Hologic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesa Laboratories	1	2	0	0	1.67
Hologic	0	13	2	0	2.13

Mesa Laboratories presently has a consensus price target of $94.00, indicating a potential upside of 3.76%. Hologic has a consensus price target of $78.42, indicating a potential upside of 4.50%. Given Hologic’s stronger consensus rating and higher probable upside, analysts clearly believe Hologic is more favorable than Mesa Laboratories.

Earnings and Valuation

This table compares Mesa Laboratories and Hologic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mesa Laboratories	$240.98 million	2.08	-$1.97 million	$0.64	141.55
Hologic	$4.10 billion	4.09	$565.70 million	$2.40	31.27

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

Institutional and Insider Ownership

90.6% of Mesa Laboratories shares are held by institutional investors. Comparatively, 94.7% of Hologic shares are held by institutional investors. 4.9% of Mesa Laboratories shares are held by insiders. Comparatively, 1.9% of Hologic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Mesa Laboratories and Hologic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesa Laboratories	1.51%	22.02%	8.86%
Hologic	13.18%	19.58%	10.88%

Summary

Hologic beats Mesa Laboratories on 10 of the 14 factors compared between the two stocks.

About Mesa Laboratories

Mesa Laboratories, Inc. develops, designs, manufactures, sells, and services life sciences tools and quality control products and services in North America, Europe, the Asia Pacific, and internationally. The Sterilization and Disinfection Control segment offers biological, chemical, and cleaning indicators, used to assess the effectiveness of sterilization decontamination, disinfection, and cleaning processes in the pharmaceutical, medical device, and healthcare industries. This segment also provides testing and laboratory services to the dental and pharmaceutical industries. The Clinical Genomics segment offers MassARRAY, a genetic analysis tool system, and related consumables, including chips, panels, and chemical reagent solutions used by clinical labs to analyze DNA samples for inherited genetic disease testing, pharmacogenetics, oncology testing, infectious disease testing, doping and toxicology testing, and other differentiated applications for use in research. The Biopharmaceutical Development segment provides automated systems, such as Gyrolab xPand and Gyrolab xPlore hardware and software, Gyrolab Bioaffy consumable microfluidic disks, Gyrolab kits and Rexxip buffers for protein analysis; PurePep Chorus and Symphony instruments for peptide synthesis; and PurePep EasyClean products for purifying peptides. The Calibration Solutions segment offers quality control products to measure and calibrate critical parameters in applications, such as environmental and process monitoring, dialysis, gas flow, air quality, and torque testing in medical device and pharmaceutical manufacturing, laboratory, and hospital environments. This segment’s products include continuous monitoring systems, dialysate meters and consumables, data loggers, gas flow calibration and air sampling equipment, and torque testing systems, offered under DialyGuard, ViewPoint, DataTrace, DryCal, and BGI brands. The company was incorporated in 1982 and is headquartered in Lakewood, Colorado.

About Hologic

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment. The company operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. It provides Aptima molecular diagnostic assays to detect the infectious microorganisms; Aptima viral load assays for Hepatitis B virus, Hepatitis C virus, human immunodeficiency virus, and human cytomegalo virus; Aptima bacterial vaginosis and candida vaginitis assays for the diagnosis of vaginitis; Aptima SARS-CoV-2 and Panther Fusion SARS-CoV-2 assays to detect SARS-CoV-2; ThinPrep System for cytology applications; and Rapid Fetal Fibronectin Test that assists physicians in assessing the risk of pre-term birth. The company also offers breast cancer care solutions in the areas of radiology, breast surgery, pathology, and treatment, such as 3D digital mammography systems, image analytics software, reading workstations, minimally invasive breast biopsy guidance systems, breast biopsy site markers, localization, specimen radiology, and connectivity solutions; and breast conserving surgery products. In addition, it provides MyoSure Hysteroscopic Tissue Removal System for the removal of fibroids and polyps in the uterus; NovaSure Endometrial Ablation System to treat abnormal uterine bleeding; Fluent Fluid Management System that provides liquid distention during diagnostic and operative hysteroscopic procedures; Acessa ProVu system to treat various fibroids; and CoolSeal portfolio, such as bipolar vessel sealing devices. Further, the company offers Horizon DXA, a dual energy X-ray system; and Fluoroscan Insight FD mini C-arm to perform minimally invasive orthopedic surgical procedures. It sells its products through direct sales, service forces, independent distributors, and sales representatives. Hologic, Inc. was incorporated in 1985 and is headquartered in Marlborough, Massachusetts.