Treace Medical Concepts (NASDAQ:TMCI) and ADM Tronics Unlimited (OTCMKTS:ADMT) Critical Review

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

Valuation and Earnings

This table compares Treace Medical Concepts and ADM Tronics Unlimited”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	0.81	-$59.00 million	($0.97)	-2.74
ADM Tronics Unlimited	$3.20 million	1.67	-$120,000.00	N/A	N/A

ADM Tronics Unlimited has lower revenue, but higher earnings than Treace Medical Concepts.

Volatility & Risk

Treace Medical Concepts has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, ADM Tronics Unlimited has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Institutional and Insider Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. 23.4% of Treace Medical Concepts shares are held by insiders. Comparatively, 73.0% of ADM Tronics Unlimited shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-29.44%	-67.04%	-30.28%
ADM Tronics Unlimited	-0.20%	-0.85%	-0.32%

Analyst Ratings

This is a summary of recent recommendations and price targets for Treace Medical Concepts and ADM Tronics Unlimited, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
ADM Tronics Unlimited	0	0	0	0	0.00

Treace Medical Concepts presently has a consensus price target of $4.77, indicating a potential upside of 79.32%. Given Treace Medical Concepts’ stronger consensus rating and higher possible upside, equities analysts clearly believe Treace Medical Concepts is more favorable than ADM Tronics Unlimited.

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 ADM Tronics Unlimited

ADM Tronics Unlimited, Inc., through its subsidiaries, develops, manufactures, and sells electronics for non-invasive medical and other applications in the United States, Australia, Asia, and Europe. It operates through Chemical, Electronics, and Engineering segments. The company offers proprietary devices for use in diagnostics and therapeutics of humans and animals; and electronic controllers for spas and hot tubs. In addition, the company provides water-based primers and adhesives; water-based coatings and resins; water-based chemical additives; and anti-static conductive paints, coatings, and other products. Further, it offers water-based, adhesive and related topical formulations for use in maxillofacial prosthetic medical applications; and for professional makeup applications primarily for film, TV, and theatrical productions. Additionally, the company provides research, development, regulatory, and engineering services for the design, development, and manufacturing of medical devices, electronics, and other technologies and products, as well as medical electronic therapeutic technology. ADM Tronics Unlimited, Inc. was incorporated in 1969 and is headquartered in Northvale, New Jersey.