Financial Survey: Tactile Systems Technology (NASDAQ:TCMD) & Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and Tactile Systems Technology (NASDAQ:TCMD) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Spectral AI and Tactile Systems Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-69.27%	N/A	-78.56%
Tactile Systems Technology	7.10%	11.49%	9.17%

Insider and Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 13.7% of Spectral AI shares are held by insiders. Comparatively, 2.1% of Tactile Systems Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Spectral AI and Tactile Systems Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$19.65 million	2.56	-$7.57 million	($0.35)	-4.46
Tactile Systems Technology	$329.52 million	1.53	$19.09 million	$1.08	20.67

Tactile Systems Technology has higher revenue and earnings than Spectral AI. Spectral AI 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.

Analyst Recommendations

This is a summary of recent recommendations for Spectral AI and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	1	2.67
Tactile Systems Technology	0	2	4	0	2.67

Spectral AI presently has a consensus price target of $4.00, indicating a potential upside of 156.41%. Tactile Systems Technology has a consensus price target of $38.40, indicating a potential upside of 72.04%. Given Spectral AI’s higher probable upside, equities analysts plainly believe Spectral AI is more favorable than Tactile Systems Technology.

Volatility and Risk

Spectral AI has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Summary

Tactile Systems Technology beats Spectral AI on 9 of the 14 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About Tactile Systems Technology

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.