NovoCure Limited (NVCR) vs TransMedics Group, Inc. (TMDX)

NovoCure Limited and TransMedics Group, Inc. are both Medical Devices companies. TransMedics Group, Inc. is the larger, with a market value of $2.4B against $1.6B — 1.5× the size. NovoCure Limited has negative trailing earnings, so its P/E is not meaningful; TransMedics Group, Inc. trades at 16.4×. TransMedics Group, Inc. grew revenue faster over the last twelve months: 28.5% against 12.9%. TransMedics Group, Inc. has the higher net margin (19.9% vs −16.8%) and the higher return on invested capital (48.0% vs −106.1%). Across the 18 metrics below, TransMedics Group, Inc. leads on 15 and NovoCure Limited on 3.

Valuation

Metric NVCR TMDX Medical Devices median
P/E n/m 16.41 25.58
P/S 2.18 3.29 2.54
P/B 4.51 4.34 2.48
Price to free cash flow n/m 53.51 28.81
EV/EBITDA n/m 22.03 11.51
EV/Sales 1.80 3.84 2.72
Earnings yield (7.83%) 6.09% (12.82%)
Free cash flow yield (1.56%) 1.87% (8.18%)

Profitability

Metric NVCR TMDX Medical Devices median
Gross margin 77.02% 58.60% 57.76%
Operating margin (17.17%) 11.88% (15.07%)
Net margin (16.78%) 19.85% (14.45%)
Free cash flow margin (3.39%) 6.14% (3.88%)
Return on equity (35.18%) 31.89% (10.35%)
Return on assets (11.12%) 11.73% (17.26%)
Return on invested capital (106.10%) 48.00% (5.27%)

Growth

Metric NVCR TMDX Medical Devices median
Revenue growth (TTM) 12.94% 28.48% 10.41%
EPS growth (last fiscal year) 21.79% 382.18% 28.17%
Revenue growth, 5-year CAGR 5.80% 88.21% 15.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NVCR TMDX Medical Devices median
Debt to equity 0.56 0.10 0.04
Current ratio 2.49 4.53 2.74
Net debt to EBITDA 1.36 0.18 0.54

Dividend

Metric NVCR TMDX Medical Devices median
Dividend yield — — 1.02%
Payout ratio — — 0.37

Size

Metric NVCR TMDX Medical Devices median
Market cap 1.58b 2.39b 239.53m

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