Contrasting Trinity Biotech (NASDAQ:TRIB) & Treace Medical Concepts (NASDAQ:TMCI)

Treace Medical Concepts (NASDAQ:TMCI) and Trinity Biotech (NASDAQ:TRIB) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Treace Medical Concepts and Trinity Biotech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
Trinity Biotech	1	0	0	0	1.00

Treace Medical Concepts currently has a consensus price target of $5.17, suggesting a potential upside of 5.51%. Given Treace Medical Concepts’ stronger consensus rating and higher probable upside, equities analysts plainly believe Treace Medical Concepts is more favorable than Trinity Biotech.

Insider and Institutional Ownership

84.1% of Treace Medical Concepts shares are owned by institutional investors. Comparatively, 79.0% of Trinity Biotech shares are owned by institutional investors. 23.4% of Treace Medical Concepts shares are owned by insiders. Comparatively, 8.2% of Trinity Biotech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Treace Medical Concepts has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Trinity Biotech has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Treace Medical Concepts and Trinity Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-28.99%	-71.37%	-30.49%
Trinity Biotech	-70.06%	N/A	-32.13%

Valuation & Earnings

This table compares Treace Medical Concepts and Trinity Biotech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	1.50	-$59.00 million	($0.93)	-5.27
Trinity Biotech	$43.78 million	0.18	-$37.38 million	($44.26)	-0.22

Trinity Biotech has lower revenue, but higher earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Trinity Biotech, indicating that it is currently the more affordable of the two stocks.

Summary

Treace Medical Concepts beats Trinity Biotech on 11 of the 14 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

About Trinity Biotech

Trinity Biotech plc acquires, together with its subsidiaries, develops, acquires, manufactures, and markets medical diagnostic products for the clinical laboratory and point-of-care (POC) segments of the diagnostic market in the Americas and Ireland. The company offers clinical laboratory products, including diagnostic tests and instrumentation, which detects infectious diseases; sexually transmitted diseases consisting of syphilis and herpes; SARS-CoV-2; and epstein barr, measles, mumps, toxoplasmosis, cytomegalovirus, rubella, varicella and other viral pathogens, as well as products for the in-vitro diagnostic testing for haemoglobin A1c used in the monitoring and diagnosis of diabetes, and identifying those who are at a risk of developing diabetes. It also provides laboratory-testing services for Sjogren's syndrome, hearing loss, celiac disease, lupus, rheumatoid arthritis, systemic sclerosis, and other laboratory-testing services for autoimmune disorders. The company develops, manufactures, and sells products in the immunofluorescence assay, enzyme-linked immunosorbent, western blot, and line immunoassay formats; and provides reagent products, such as ACE, bile acids, oxalate, and glucose-6-phosphate dehydrogenase for diagnosis of liver and kidney diseases, as well as haemolytic anaemia. It serves public health authorities, non-governmental organisations, and clinical and reference laboratories through its direct sales force, as well as through a network of independent distributors and strategic partners. Trinity Biotech plc was incorporated in 1992 and is headquartered in Bray, Ireland.