Contrasting Elekta (OTCMKTS:EKTAY) and Tandem Diabetes Care (NASDAQ:TNDM)

Elekta (OTCMKTS:EKTAY) and Tandem Diabetes Care (NASDAQ:TNDM) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Elekta and Tandem Diabetes Care, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elekta	0	1	0	0	2.00
Tandem Diabetes Care	1	12	9	1	2.43

Tandem Diabetes Care has a consensus price target of $27.08, indicating a potential upside of 69.14%. Given Tandem Diabetes Care’s stronger consensus rating and higher probable upside, analysts plainly believe Tandem Diabetes Care is more favorable than Elekta.

Valuation and Earnings

This table compares Elekta and Tandem Diabetes Care”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elekta	$1.78 billion	1.12	-$55.38 million	($0.12)	-45.08
Tandem Diabetes Care	$1.01 billion	1.10	-$204.71 million	($0.93)	-17.22

Elekta has higher revenue and earnings than Tandem Diabetes Care. Elekta is trading at a lower price-to-earnings ratio than Tandem Diabetes Care, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Elekta and Tandem Diabetes Care’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elekta	-2.38%	13.47%	3.84%
Tandem Diabetes Care	-6.08%	-45.97%	-6.23%

Risk and Volatility

Elekta has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Summary

Elekta beats Tandem Diabetes Care on 7 of the 12 factors compared between the two stocks.

About Elekta

Elekta AB (publ), a medical technology company, provides clinical solutions for treating cancer and brain disorders worldwide. The company offers Versa HD, a brain metastases solution; Elekta Unity for real-time MR visualization; Elekta Harmony, a linear accelerator; Elekta Infinity for treating a range of patients with simple-to-complex radiotherapy needs; Elekta Synergy, a digital accelerator for image guided radiation therapy; treatment and workflow management solutions; radiation and medical oncology; and other patient services. It also provides Elekta Studio, an image guided brachytherapy solution; ImagingRing, a mobile CT scanner; Oncentra Brachy, a smart tool that facilitate repetitive tasks; Venezia applicator that enables the oncologist to treat locally advanced cervical cancer; Elekta Flexitron afterloader for enabling the precise execution of all steps in the workflow; Geneva, an applicator for cervical cancer treatment; veterinary radiation therapy products; and Elekta Kaiku for personalized cancer care. In addition, the company offers stereotactic radiosurgery, such as Leksell Gamma Knife Icon for personalized radiation treatment; Leksell Gamma Knife Perfexion, a tool for radiosurgeons; and Elekta Esprit. Further, it provides neurosurgery products comprising Leksell Vantage Stereotactic System for intracranial neurosurgery; and Leksell Stereotactic System for minimally invasive stereotactic neurosurgery. The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.