Analyzing InMode (NASDAQ:INMD) and IDEXX Laboratories (NASDAQ:IDXX)

IDEXX Laboratories (NASDAQ:IDXX) and InMode (NASDAQ:INMD) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares IDEXX Laboratories and InMode’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDEXX Laboratories	25.03%	71.96%	33.60%
InMode	20.69%	11.99%	10.60%

Earnings and Valuation

This table compares IDEXX Laboratories and InMode”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEXX Laboratories	$4.30 billion	9.56	$1.06 billion	$14.22	36.72
InMode	$370.49 million	2.29	$93.83 million	$1.23	12.02

IDEXX Laboratories has higher revenue and earnings than InMode. InMode is trading at a lower price-to-earnings ratio than IDEXX Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for IDEXX Laboratories and InMode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEXX Laboratories	0	4	6	0	2.60
InMode	1	6	1	0	2.00

IDEXX Laboratories currently has a consensus target price of $747.00, suggesting a potential upside of 43.06%. InMode has a consensus target price of $16.00, suggesting a potential upside of 8.22%. Given IDEXX Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe IDEXX Laboratories is more favorable than InMode.

Insider & Institutional Ownership

87.8% of IDEXX Laboratories shares are owned by institutional investors. Comparatively, 68.0% of InMode shares are owned by institutional investors. 0.8% of IDEXX Laboratories shares are owned by insiders. Comparatively, 6.9% of InMode shares are owned by 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.

Risk and Volatility

IDEXX Laboratories has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, InMode has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Summary

IDEXX Laboratories beats InMode on 12 of the 14 factors compared between the two stocks.

About IDEXX Laboratories

IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. Additionally, the company offers human medical point-of-care products and laboratory diagnostics services. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.