Tandem Diabetes Care (NASDAQ:TNDM – Get Free Report) and Femasys (NASDAQ:FEMY – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk & Volatility
Tandem Diabetes Care has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Femasys has a beta of -2.07, suggesting that its share price is 307% less volatile than the S&P 500.
Profitability
This table compares Tandem Diabetes Care and Femasys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandem Diabetes Care | -6.08% | -45.97% | -6.23% |
| Femasys | -534.36% | -225.97% | -74.68% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandem Diabetes Care | $1.04 billion | 1.33 | -$204.71 million | ($0.93) | -21.40 |
| Femasys | $2.30 million | 10.85 | -$18.63 million | ($3.53) | -0.84 |
Femasys has lower revenue, but higher earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Femasys, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Tandem Diabetes Care and Femasys, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandem Diabetes Care | 1 | 11 | 10 | 1 | 2.48 |
| Femasys | 1 | 0 | 3 | 0 | 2.50 |
Tandem Diabetes Care currently has a consensus price target of $28.98, suggesting a potential upside of 45.60%. Femasys has a consensus price target of $50.00, suggesting a potential upside of 1,577.85%. Given Femasys’ stronger consensus rating and higher probable upside, analysts plainly believe Femasys is more favorable than Tandem Diabetes Care.
Insider and Institutional Ownership
65.3% of Femasys shares are held by institutional investors. 2.1% of Tandem Diabetes Care shares are held by insiders. Comparatively, 7.7% of Femasys shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Tandem Diabetes Care beats Femasys on 8 of the 15 factors compared between the two stocks.
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.
About Femasys
Femasys Inc., a biomedical company, develops therapeutic and diagnostic solutions to address unmet women healthcare needs worldwide. The company provides FemVue saline-air device, a contrast-generating product in the United States, Canada, Japan, and Hong Kong; FemCath, a cornual balloon catheter, a single intrauterine directional delivery product that allows for selective evaluation of an individual fallopian tube; and FemCerv, a biopsy device for endocervical curettage, which can be used to sample cervical cells and tissue circumferentially with sample containment within the device to minimize contamination. It also develops permanent birth control solutions, such as FemBloc and FemChec; FemaSeed, an artificial insemination solution; and FemEMB, a product candidate for endometrial sampling in support of uterine cancer detection testing. The company offers its products to reproductive endocrinologists for infertility products, obstetrics-gynecological physicians, related healthcare professionals, and women's healthcare provider organizations. Femasys Inc. was incorporated in 2004 and is headquartered in Suwanee, Georgia.
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