TransMedics Group (NASDAQ:TMDX) vs. AVITA Medical (NASDAQ:RCEL) Head-To-Head Review

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

Volatility and Risk

TransMedics Group has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, AVITA Medical has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
TransMedics Group -3.43% 7.95% 1.61%
AVITA Medical -88.41% -84.07% -47.63%

Insider & Institutional Ownership

99.7% of TransMedics Group shares are held by institutional investors. Comparatively, 27.7% of AVITA Medical shares are held by institutional investors. 7.0% of TransMedics Group shares are held by insiders. Comparatively, 1.8% of AVITA Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares TransMedics Group and AVITA Medical’s gross 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 19.48 -$25.03 million ($0.34) -420.18
AVITA Medical $50.14 million 4.44 -$35.38 million ($1.76) -4.90

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for TransMedics Group and AVITA Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransMedics Group 0 1 7 0 2.88
AVITA Medical 0 2 3 0 2.60

TransMedics Group presently has a consensus target price of $119.00, indicating a potential downside of 16.70%. AVITA Medical has a consensus target price of $24.60, indicating a potential upside of 185.05%. Given AVITA Medical’s higher possible upside, analysts clearly believe AVITA Medical is more favorable than TransMedics Group.

Summary

TransMedics Group beats AVITA Medical on 12 of the 14 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 AVITA Medical

(Get Free Report)

AVITA Medical, Inc., together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions. It develops RECELL GO to control the manual process of disaggregation, filtration, and soak time. The company was formerly known as AVITA Therapeutics, Inc. AVITA Medical, Inc. was incorporated in 2020 and is headquartered in Valencia, California.

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