Critical Review: TransMedics Group (NASDAQ:TMDX) versus Semler Scientific (NASDAQ:SMLR)

TransMedics Group (NASDAQ:TMDXGet Free Report) and Semler Scientific (NASDAQ:SMLRGet Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares TransMedics Group and Semler Scientific”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 $241.62 million 20.88 -$25.03 million ($0.34) -444.74
Semler Scientific $68.18 million 2.61 $20.58 million $2.79 9.11

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

Risk and Volatility

TransMedics Group has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Semler Scientific has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TransMedics Group and Semler Scientific, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransMedics Group 0 1 8 0 2.89
Semler Scientific 0 0 0 1 4.00

TransMedics Group presently has a consensus target price of $171.44, suggesting a potential upside of 13.38%. Given TransMedics Group’s higher probable upside, equities research analysts clearly believe TransMedics Group is more favorable than Semler Scientific.

Profitability

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

Net Margins Return on Equity Return on Assets
TransMedics Group 0.84% 15.98% 3.41%
Semler Scientific 25.62% 21.17% 19.40%

Insider & Institutional Ownership

99.7% of TransMedics Group shares are held by institutional investors. Comparatively, 49.4% of Semler Scientific shares are held by institutional investors. 7.0% of TransMedics Group shares are held by company insiders. Comparatively, 13.0% of Semler Scientific shares are held by company 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.

Summary

Semler Scientific beats TransMedics Group on 9 of the 15 factors compared between the two stocks.

About TransMedics Group

(Get Free Report)

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 Semler Scientific

(Get Free Report)

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company's products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient's vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company's products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.

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