Head-To-Head Review: Luminex Corporation (LMNX) and Transenterix (TRXC)

Luminex Corporation (NASDAQ: LMNX) and Transenterix (NYSE:TRXC) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Luminex Corporation and Transenterix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luminex Corporation 5.00% 5.48% 4.98%
Transenterix N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Luminex Corporation and Transenterix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luminex Corporation 1 4 1 0 2.00
Transenterix 0 0 1 0 3.00

Luminex Corporation currently has a consensus price target of $21.40, indicating a potential upside of 3.13%. Transenterix has a consensus price target of $2.75, indicating a potential upside of 428.85%. Given Transenterix’s stronger consensus rating and higher probable upside, analysts clearly believe Transenterix is more favorable than Luminex Corporation.

Earnings & Valuation

This table compares Luminex Corporation and Transenterix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Luminex Corporation $285.44 million 3.19 $50.46 million $0.32 64.85
Transenterix $3.46 million 22.32 -$47.59 million N/A N/A

Luminex Corporation has higher revenue and earnings than Transenterix.

Insider & Institutional Ownership

78.4% of Luminex Corporation shares are held by institutional investors. 6.9% of Luminex Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Luminex Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Transenterix does not pay a dividend. Luminex Corporation pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Luminex Corporation beats Transenterix on 8 of the 12 factors compared between the two stocks.

About Luminex Corporation

Luminex Corporation develops, manufactures and sells biological testing technologies with applications throughout the diagnostics, pharmaceutical and life sciences industries. The Company’s products are focused on the molecular diagnostic testing market, which includes human genetics, personalized medicine and infectious disease segments. The Company has a range of instruments using its xMAP technology, which includes its LUMINEX 100/200 systems offer 100-plex testing; the Company’s FLEXMAP 3D system is its high-throughput, 500-plex testing system, and its MAGPIX system provides 50-plex testing using imaging rather than flow cytometry. By using its xMAP technology, the end users are able to generate multiple simultaneous results per sample. The Company primarily serves the diagnostics, pharmaceutical and life sciences industries by marketing products, including its testing equipment and assays, to a range of testing laboratories.

About Transenterix

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.

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