Head-To-Head Analysis: K2M Group Holdings (KTWO) versus Transenterix (TRXC)
Transenterix (NYSE: TRXC) and K2M Group Holdings (NASDAQ:KTWO) are both small-cap medical equipment, supplies & distribution – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
This table compares Transenterix and K2M Group Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|K2M Group Holdings||-16.22%||-16.02%||-10.73%|
This is a summary of current ratings and recommmendations for Transenterix and K2M Group Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|K2M Group Holdings||0||0||8||1||3.11|
Transenterix currently has a consensus price target of $3.38, suggesting a potential upside of 18.84%. K2M Group Holdings has a consensus price target of $25.13, suggesting a potential upside of 32.73%. Given K2M Group Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe K2M Group Holdings is more favorable than Transenterix.
Institutional and Insider Ownership
99.1% of K2M Group Holdings shares are owned by institutional investors. 5.8% of K2M Group Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Transenterix and K2M Group Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|K2M Group Holdings||$236.63 million||3.47||-$41.66 million||($0.97)||-19.52|
Transenterix has higher revenue, but lower earnings than K2M Group Holdings. K2M Group Holdings is trading at a lower price-to-earnings ratio than Transenterix, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Transenterix has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, K2M Group Holdings has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
K2M Group Holdings beats Transenterix on 10 of the 12 factors compared between the two stocks.
TransEnterix, Inc. is a medical device company. The Company is focused on the development and commercialization of ALF-X Surgical Robotic System (the ALF-X System), and SurgiBot System. The Company’s ALF-X System is a multi-port robotic surgery system, which allows multiple robotic arms to control instruments and a camera. The system features advanced technology to enable surgeons with haptic feedback and the ability to move the camera through eye movement. The system replicates laparoscopic motion and integrates three-dimensional high definition (3DHD) vision technology. The ALF-X System also offers responsible economics to hospitals by offering robotic technology with reusable instruments. The SurgiBot System is designed as a single-incision, patient-side robotic-assisted surgery system. The Company also develops and manufactures laparoscopic surgical instruments that are used in abdominal surgery, such as scissors, graspers, clip appliers, and suction and irrigation instruments.
About K2M Group Holdings
K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.
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