Financial Contrast: PAVmed (NASDAQ:PAVM) and Treace Medical Concepts (NASDAQ:TMCI)

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

Earnings and Valuation

This table compares Treace Medical Concepts and PAVmed”s 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	0.44	-$59.00 million	($0.94)	-1.54
PAVmed	$70,000.00	140.71	$39.79 million	($22.77)	-0.43

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

Analyst Ratings

This is a breakdown of current recommendations for Treace Medical Concepts and PAVmed, 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
PAVmed	1	1	1	0	2.00

Treace Medical Concepts currently has a consensus target price of $4.77, indicating a potential upside of 228.97%. PAVmed has a consensus target price of $510.00, indicating a potential upside of 5,077.66%. Given PAVmed’s stronger consensus rating and higher probable upside, analysts plainly believe PAVmed is more favorable than Treace Medical Concepts.

Insider and Institutional Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 19.9% of PAVmed shares are held by institutional investors. 27.7% of Treace Medical Concepts shares are held by insiders. Comparatively, 5.8% of PAVmed shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Treace Medical Concepts has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, PAVmed has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-27.74%	-59.91%	-28.44%
PAVmed	564.79%	-242.99%	-17.25%

Summary

PAVmed beats Treace Medical Concepts on 7 of the 13 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 PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.