Analyzing TransMedics Group (NASDAQ:TMDX) and DarioHealth (NASDAQ:DRIO)

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

Volatility and Risk

TransMedics Group has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

99.7% of TransMedics Group shares are owned by institutional investors. Comparatively, 33.4% of DarioHealth shares are owned by institutional investors. 6.9% of TransMedics Group shares are owned by company insiders. Comparatively, 3.5% of DarioHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TransMedics Group and DarioHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransMedics Group	0	6	6	0	2.50
DarioHealth	1	1	1	0	2.00

TransMedics Group presently has a consensus target price of $135.00, suggesting a potential upside of 95.85%. DarioHealth has a consensus target price of $10.50, suggesting a potential upside of 33.59%. Given TransMedics Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TransMedics Group is more favorable than DarioHealth.

Valuation & Earnings

This table compares TransMedics Group and DarioHealth”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransMedics Group	$635.89 million	3.75	$190.29 million	$4.40	15.67
DarioHealth	$22.36 million	2.57	-$41.71 million	($8.88)	-0.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TransMedics Group	27.04%	22.38%	8.46%
DarioHealth	-192.23%	-60.52%	-37.08%

Summary

TransMedics Group beats DarioHealth on 14 of the 14 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 DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.