Semler Scientific (NASDAQ:SMLR) vs. Tactile Systems Technology (NASDAQ:TCMD) Head-To-Head Contrast

Semler Scientific (NASDAQ:SMLR) and Tactile Systems Technology (NASDAQ:TCMD) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Insider and Institutional Ownership

49.4% of Semler Scientific shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 16.4% of Semler Scientific shares are owned by company insiders. Comparatively, 2.5% of Tactile Systems Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Semler Scientific has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Semler Scientific and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	0	1	4	0	2.80
Tactile Systems Technology	0	3	1	2	2.83

Semler Scientific currently has a consensus target price of $74.25, suggesting a potential upside of 188.57%. Tactile Systems Technology has a consensus target price of $21.67, suggesting a potential downside of 11.89%. Given Semler Scientific’s higher probable upside, research analysts plainly believe Semler Scientific is more favorable than Tactile Systems Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	86.20%	43.84%	32.88%
Tactile Systems Technology	5.06%	7.72%	5.59%

Earnings & Valuation

This table compares Semler Scientific and Tactile Systems Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semler Scientific	$56.29 million	6.92	$40.90 million	$2.43	10.59
Tactile Systems Technology	$311.51 million	1.76	$16.96 million	$0.77	31.94

Semler Scientific has higher earnings, but lower revenue than Tactile Systems Technology. Semler Scientific 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.

Summary

Semler Scientific beats Tactile Systems Technology on 10 of the 15 factors compared between the two stocks.

About Semler Scientific

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.

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.