Analyzing Heska Corporation (NASDAQ:HSKA) & IDEXX Laboratories (IDXX)

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

Earnings and Valuation

This table compares Heska Corporation and IDEXX Laboratories’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Heska Corporation $137.69 million 4.91 $22.94 million $1.96 48.80
IDEXX Laboratories $1.86 billion 7.18 $467.99 million $2.92 52.40

IDEXX Laboratories has higher revenue and earnings than Heska Corporation. Heska Corporation 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 Ratings

This is a breakdown of recent ratings and price targets for Heska Corporation and IDEXX Laboratories, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heska Corporation 0 3 2 0 2.40
IDEXX Laboratories 2 1 3 0 2.17

Heska Corporation presently has a consensus target price of $104.25, indicating a potential upside of 9.00%. IDEXX Laboratories has a consensus target price of $170.75, indicating a potential upside of 11.59%. Given IDEXX Laboratories’ higher probable upside, analysts plainly believe IDEXX Laboratories is more favorable than Heska Corporation.

Profitability

This table compares Heska Corporation and IDEXX Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heska Corporation 10.70% 15.87% 11.45%
IDEXX Laboratories 14.13% -473.46% 16.18%

Risk and Volatility

Heska Corporation has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, IDEXX Laboratories has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

81.5% of Heska Corporation shares are held by institutional investors. Comparatively, 89.8% of IDEXX Laboratories shares are held by institutional investors. 14.7% of Heska Corporation shares are held by insiders. Comparatively, 2.8% of IDEXX Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

IDEXX Laboratories beats Heska Corporation on 10 of the 14 factors compared between the two stocks.

About Heska Corporation

Heska Corporation sells veterinary diagnostic and specialty products. The Company operates through two segments: Core Companion Animal Health (CCA) and Other Vaccines, Pharmaceuticals and Products (OVP). The CCA segment includes, primarily for canine and feline use, blood testing instruments and supplies, digital imaging products, software and services, local and cloud-based data services, allergy testing and immunotherapy, and single use offerings, such as in-clinic diagnostic tests and heartworm preventive products. Its OVP segment includes private label vaccine and pharmaceutical production for cattle but also for other species, including equine, porcine, avian, feline and canine. All OVP products are sold by third parties under third-party labels. It focuses on supporting veterinarians in canine and feline healthcare space. It offers a line of veterinary blood testing and other instruments. It manufactures biological and pharmaceutical products for other animal health companies.

About IDEXX Laboratories

IDEXX Laboratories, Inc. develops, manufactures and distributes products and provides services for the companion animal veterinary, livestock and poultry, dairy and water testing markets. The Company also sells a line of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market. Its segments include diagnostic and information technology-based products and services for the veterinary market, which the Company refers to as the Companion Animal Group; water quality products; diagnostic products and services for livestock and poultry health, which the Company refers to as Livestock, Poultry and Dairy, and Other operating segment, which combines and presents products for the human point-of-care medical diagnostics market with its pharmaceutical product line and its out-licensing arrangements. Its products and services include point-of-care veterinary diagnostic products, comprising instruments, consumables and rapid assay test kits, among others.

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