Reviewing IDEXX Laboratories (IDXX) and Arca Biopharma (ABIO)

IDEXX Laboratories (NASDAQ:IDXX) and Arca Biopharma (NASDAQ:ABIO) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

88.2% of IDEXX Laboratories shares are held by institutional investors. 2.7% of IDEXX Laboratories shares are held by insiders. Comparatively, 3.6% of Arca Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

IDEXX Laboratories has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Arca Biopharma has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for IDEXX Laboratories and Arca Biopharma, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDEXX Laboratories 0 0 5 0 3.00
Arca Biopharma 0 0 0 0 N/A

IDEXX Laboratories currently has a consensus price target of $248.80, indicating a potential upside of 13.87%. Given IDEXX Laboratories’ higher possible upside, analysts clearly believe IDEXX Laboratories is more favorable than Arca Biopharma.

Profitability

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

Net Margins Return on Equity Return on Assets
IDEXX Laboratories 17.03% -1,501.97% 24.84%
Arca Biopharma N/A -94.63% -83.28%

Valuation and Earnings

This table compares IDEXX Laboratories and Arca Biopharma’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IDEXX Laboratories $2.21 billion 8.49 $377.03 million $4.26 51.29
Arca Biopharma N/A N/A -$7.93 million N/A N/A

IDEXX Laboratories has higher revenue and earnings than Arca Biopharma.

Summary

IDEXX Laboratories beats Arca Biopharma on 7 of the 10 factors compared between the two stocks.

IDEXX Laboratories Company Profile

IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through Companion Animal Group; Water Quality Products; Livestock, Poultry and Dairy; and Other segments. It 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 animal diagnostic instruments and services for biomedical research community. The company also offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; and point-of-care electrolytes and blood gas analyzers that are used in the human point-of-care medical diagnostics market. It 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 founded in 1983 and is headquartered in Westbrook, Maine.

Arca Biopharma Company Profile

ARCA biopharma, Inc. is a biopharmaceutical company applying a precision medicine approach to developing genetically-targeted therapies for cardiovascular diseases. Its lead product candidate, Gencaro (bucindolol hydrochloride), is an investigational, pharmacologically unique beta-blocker and mild vasodilator, which is in the development for the treatment of atrial fibrillation in certain patients who also have heart failure (HF). The company also engages in the development of a preclinical plan for AB171, a new chemical entity for the treatment of various cardiovascular indications, such as peripheral arterial disease and chronic HF. It has a collaboration agreement with Medtronic, Inc. for the support of GENETIC-AF Phase 2B clinical trials; and Laboratory Corporation of America to provide the companion diagnostic test and services to support GENETIC-AF trial. ARCA biopharma, Inc. is headquartered in Westminster, Colorado.

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