Contrasting OPKO Health (NASDAQ:OPK) & TransMedics Group (NASDAQ:TMDX)

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

Volatility & Risk

OPKO Health has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Earnings and Valuation

This table compares OPKO Health and TransMedics Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPKO Health	$606.90 million	1.80	-$225.68 million	($0.27)	-5.37
TransMedics Group	$605.49 million	4.20	$190.29 million	$4.40	16.73

TransMedics Group has lower revenue, but higher earnings than OPKO Health. OPKO Health 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 OPKO Health and TransMedics Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OPKO Health	-36.63%	-16.78%	-10.98%
TransMedics Group	27.04%	22.38%	8.46%

Institutional and Insider Ownership

64.6% of OPKO Health shares are held by institutional investors. Comparatively, 99.7% of TransMedics Group shares are held by institutional investors. 49.7% of OPKO Health shares are held by insiders. Comparatively, 6.9% of TransMedics Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for OPKO Health and TransMedics Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPKO Health	1	4	0	1	2.17
TransMedics Group	0	7	6	0	2.46

OPKO Health currently has a consensus price target of $1.55, suggesting a potential upside of 6.90%. TransMedics Group has a consensus price target of $134.00, suggesting a potential upside of 82.09%. Given TransMedics Group’s stronger consensus rating and higher probable upside, analysts clearly believe TransMedics Group is more favorable than OPKO Health.

Summary

TransMedics Group beats OPKO Health on 12 of the 15 factors compared between the two stocks.

About OPKO Health

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.

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.