TransMedics Group (NASDAQ:TMDX – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both mid-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Volatility & Risk
TransMedics Group has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
Insider & Institutional Ownership
99.7% of TransMedics Group shares are owned by institutional investors. 6.9% of TransMedics Group shares are owned by insiders. Comparatively, 1.0% of iRhythm Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransMedics Group | 1 | 6 | 5 | 0 | 2.33 |
| iRhythm Technologies | 1 | 1 | 12 | 2 | 2.94 |
TransMedics Group currently has a consensus price target of $115.60, indicating a potential upside of 53.07%. iRhythm Technologies has a consensus price target of $178.79, indicating a potential upside of 68.59%. Given iRhythm Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe iRhythm Technologies is more favorable than TransMedics Group.
Profitability
This table compares TransMedics Group and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TransMedics Group | 22.69% | 15.88% | 5.95% |
| iRhythm Technologies | -1.69% | 10.11% | 1.53% |
Earnings and Valuation
This table compares TransMedics Group and iRhythm Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TransMedics Group | $605.49 million | 4.31 | $190.29 million | $3.89 | 19.41 |
| iRhythm Technologies | $825.34 million | 4.24 | -$44.55 million | ($0.43) | -246.63 |
TransMedics Group has higher earnings, but lower revenue than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than TransMedics Group, indicating that it is currently the more affordable of the two stocks.
Summary
TransMedics Group beats iRhythm Technologies on 10 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 iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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