Financial Analysis: Gadsden Properties (OTCMKTS:GADS) and TransMedics Group (NASDAQ:TMDX)

Gadsden Properties (OTCMKTS:GADS) and TransMedics Group (NASDAQ:TMDX) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Gadsden Properties and TransMedics Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gadsden Properties	N/A	N/A	N/A
TransMedics Group	0.84%	15.98%	3.41%

Institutional & Insider Ownership

99.7% of TransMedics Group shares are held by institutional investors. 5.0% of Gadsden Properties shares are held by insiders. Comparatively, 7.0% of TransMedics Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gadsden Properties and TransMedics Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gadsden Properties	N/A	N/A	N/A	N/A	N/A
TransMedics Group	$241.62 million	19.86	-$25.03 million	($0.34)	-422.97

Gadsden Properties has higher earnings, but lower revenue than TransMedics Group.

Volatility and Risk

Gadsden Properties has a beta of -4.55, suggesting that its share price is 555% less volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Gadsden Properties and TransMedics Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gadsden Properties	0	0	0	0	N/A
TransMedics Group	0	1	8	0	2.89

TransMedics Group has a consensus price target of $171.44, indicating a potential upside of 19.22%.

Summary

TransMedics Group beats Gadsden Properties on 8 of the 8 factors compared between the two stocks.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.

About TransMedics Group

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity. The company was founded in 1998 and is headquartered in Andover, Massachusetts.