Critical Review: TransMedics Group (NASDAQ:TMDX) and Cooper Companies (NASDAQ:COO)

Cooper Companies (NASDAQ:COO) and TransMedics Group (NASDAQ:TMDX) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Cooper Companies has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.

Institutional & Insider Ownership

24.4% of Cooper Companies shares are held by institutional investors. Comparatively, 99.7% of TransMedics Group shares are held by institutional investors. 2.1% of Cooper Companies shares are held by insiders. Comparatively, 6.9% of TransMedics Group 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.

Analyst Recommendations

This is a summary of current recommendations for Cooper Companies and TransMedics Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cooper Companies	2	12	5	0	2.16
TransMedics Group	1	6	6	0	2.38

Cooper Companies currently has a consensus price target of $68.60, suggesting a potential upside of 25.30%. TransMedics Group has a consensus price target of $121.00, suggesting a potential upside of 49.25%. Given TransMedics Group’s stronger consensus rating and higher probable upside, analysts clearly believe TransMedics Group is more favorable than Cooper Companies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cooper Companies	13.46%	10.90%	7.24%
TransMedics Group	22.69%	15.88%	5.95%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cooper Companies	$4.09 billion	2.54	$374.90 million	$2.93	18.69
TransMedics Group	$605.49 million	4.63	$190.29 million	$3.89	20.84

Cooper Companies has higher revenue and earnings than TransMedics Group. Cooper Companies 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 Cooper Companies on 11 of the 14 factors compared between the two stocks.

About Cooper Companies

The Cooper Companies, Inc., together with its subsidiaries, develops, manufactures, and markets contact lens wearers. The company operates in two segments, CooperVision and CooperSurgical. The CooperVision segment provides spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, and myopia in the Americas, Europe, Middle East, Africa, and Asia Pacific. The CooperSurgical segment focuses on family and women's health care, which provides fertility products and services, medical devices, and contraception, as well as cryostorage, such as cord blood and cord tissue storage to health care professionals and patients worldwide. It offers surgical and office products, including endosee endometrial imaging products, fetal pillow cephalic elevation devices for use in cesarean sections, illuminated speculum products, lone star retractor systems, loop electrosurgical excision procedure products, mara water ablation systems, paragard contraceptive IUDs, point-of-care, and uterine positioning products, as well as cryostorage, such as cord blood and cord tissue storage; fertility products and services, such as fertility consumables and equipment, donor gamete services, and genomic services, including genetic testing. The company sells its products to distributors, group purchasing organizations, eye care and health care professionals, including independent practices, corporate retailers, hospitals and clinics, and authorized resellers. The Cooper Companies, Inc. was founded in 1958 and is headquartered in San Ramon, California.

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.