Establishment Labs Holdings Inc. (ESTA) vs TransMedics Group, Inc. (TMDX)

Establishment Labs Holdings Inc. and TransMedics Group, Inc. are both Medical Devices companies. TransMedics Group, Inc. is the larger, with a market value of $2.9B against $2.0B — 1.5× the size. Establishment Labs Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; TransMedics Group, Inc. trades at 19.3×. Establishment Labs Holdings Inc. grew revenue faster over the last twelve months: 38.6% against 25.8%. TransMedics Group, Inc. has the higher net margin (22.7% vs −15.8%) and the higher return on invested capital (5.62% vs −5.53%). Across the 18 metrics below, TransMedics Group, Inc. leads on 15 and Establishment Labs Holdings Inc. on 3.

Valuation

Metric ESTA TMDX Medical Devices median
P/E n/m 19.30 22.18
P/S 8.08 4.41 2.70
P/B 91.97 5.69 2.46
Price to free cash flow n/m 37.31 22.53
EV/EBITDA n/m 28.28 11.78
EV/Sales 8.86 4.99 2.38
Earnings yield (1.99%) 5.18% (8.22%)
Free cash flow yield (2.09%) 2.68% (7.80%)

Profitability

Metric ESTA TMDX Medical Devices median
Gross margin 70.49% 58.69% 56.01%
Operating margin (7.63%) 12.21% (15.03%)
Net margin (15.82%) 22.69% (20.40%)
Free cash flow margin (16.90%) 11.82% (7.24%)
Return on equity (175.30%) 36.28% (15.32%)
Return on assets (11.41%) 12.88% (19.72%)
Return on invested capital (5.53%) 5.62% (10.33%)

Growth

Metric ESTA TMDX Medical Devices median
Revenue growth (TTM) 38.55% 25.82% 8.80%
EPS growth (last fiscal year) 42.67% 382.18% —
Revenue growth, 5-year CAGR 20.04% 88.21% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ESTA TMDX Medical Devices median
Debt to equity 12.11 1.66 0.07
Current ratio 3.84 6.63 2.50
Net debt to EBITDA (6.03) 0.18 0.49

Dividend

Metric ESTA TMDX Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric ESTA TMDX Medical Devices median
Market cap 1.95b 2.91b 172.91m

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