Analyzing Transenterix (TRXC) and Its Rivals

Transenterix (NYSE: TRXC) is one of 90 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare Transenterix to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Institutional & Insider Ownership

68.1% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 11.3% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Transenterix and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transenterix 0 0 2 0 3.00
Transenterix Competitors 210 1304 2830 100 2.63

Transenterix currently has a consensus target price of $3.38, suggesting a potential upside of 17.19%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 5.17%. Given Transenterix’s stronger consensus rating and higher probable upside, analysts clearly believe Transenterix is more favorable than its competitors.

Earnings & Valuation

This table compares Transenterix and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Transenterix N/A N/A -6.13
Transenterix Competitors $1.09 billion $127.35 million 197.15

Transenterix’s competitors have higher revenue and earnings than Transenterix. Transenterix is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Transenterix and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transenterix -928.85% -49.16% -33.51%
Transenterix Competitors -127.19% -38.60% -10.09%

Volatility and Risk

Transenterix has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Transenterix’s competitors have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Summary

Transenterix competitors beat Transenterix on 7 of the 11 factors compared.

Transenterix Company Profile

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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