Tactile Systems Technology (NASDAQ:TCMD) and SeaSpine (NASDAQ:SPNE) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
96.3% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 73.3% of SeaSpine shares are held by institutional investors. 3.3% of Tactile Systems Technology shares are held by company insiders. Comparatively, 10.6% of SeaSpine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Tactile Systems Technology and SeaSpine, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tactile Systems Technology||0||1||1||0||2.50|
Tactile Systems Technology currently has a consensus target price of $57.50, indicating a potential upside of 37.72%. SeaSpine has a consensus target price of $25.20, indicating a potential upside of 58.79%. Given SeaSpine’s stronger consensus rating and higher probable upside, analysts clearly believe SeaSpine is more favorable than Tactile Systems Technology.
This table compares Tactile Systems Technology and SeaSpine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tactile Systems Technology||6.72%||9.90%||7.07%|
Valuation and Earnings
This table compares Tactile Systems Technology and SeaSpine’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tactile Systems Technology||$187.13 million||4.41||-$620,000.00||$0.48||86.98|
|SeaSpine||$154.35 million||3.74||-$43.18 million||($1.54)||-10.31|
Tactile Systems Technology has higher revenue and earnings than SeaSpine. SeaSpine is trading at a lower price-to-earnings ratio than Tactile Systems Technology, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Tactile Systems Technology has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, SeaSpine has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Tactile Systems Technology beats SeaSpine on 10 of the 14 factors compared between the two stocks.
Tactile Systems Technology Company Profile
Tactile Systems Technology, Inc. is a medical technology company. It develops and provides innovative medical devices for the treatment of chronic diseases at home. The company focus on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising healthcare expenditures. It possesses a platform to deliver at-home healthcare solutions throughout the United States. Tactile Systems Technology was founded on January 30, 1995 and is headquartered in Minneapolis, MN.
SeaSpine Company Profile
SeaSpine Holdings Corp. operates as a medical technology company. The firm engages in the design, developmen and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. It products include thoracolumbar hardware, cervical hardware, orthobiologics, and spine pure strip. The company was founded on February 12, 2015 and is headquartered in Carlsbad, CA.
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