Abbott Laboratories (NYSE:ABT – Get Free Report) and Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
Abbott Laboratories has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Profitability
This table compares Abbott Laboratories and Treace Medical Concepts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Abbott Laboratories | 11.65% | 17.69% | 9.44% |
| Treace Medical Concepts | -28.99% | -71.37% | -30.49% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Abbott Laboratories | $44.33 billion | 4.25 | $6.52 billion | $3.09 | 35.23 |
| Treace Medical Concepts | $212.69 million | 1.41 | -$59.00 million | ($0.93) | -4.95 |
Abbott Laboratories has higher revenue and earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
75.2% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are owned by institutional investors. 0.5% of Abbott Laboratories shares are owned by company insiders. Comparatively, 23.4% of Treace Medical Concepts shares are owned 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.
Analyst Ratings
This is a summary of current recommendations and price targets for Abbott Laboratories and Treace Medical Concepts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Abbott Laboratories | 0 | 4 | 20 | 3 | 2.96 |
| Treace Medical Concepts | 2 | 4 | 1 | 0 | 1.86 |
Abbott Laboratories currently has a consensus price target of $119.50, indicating a potential upside of 9.77%. Treace Medical Concepts has a consensus price target of $5.17, indicating a potential upside of 12.39%. Given Treace Medical Concepts’ higher probable upside, analysts plainly believe Treace Medical Concepts is more favorable than Abbott Laboratories.
Summary
Abbott Laboratories beats Treace Medical Concepts on 11 of the 15 factors compared between the two stocks.
About Abbott Laboratories
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.
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.
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