Tactile Systems Technology (NASDAQ:TCMD) versus RxSight (NASDAQ:RXST) Head-To-Head Review

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

Analyst Recommendations

This is a breakdown of current recommendations for RxSight and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RxSight	3	7	2	0	1.92
Tactile Systems Technology	0	2	4	0	2.67

RxSight currently has a consensus price target of $8.50, suggesting a potential upside of 35.14%. Tactile Systems Technology has a consensus price target of $38.60, suggesting a potential upside of 28.75%. Given RxSight’s higher probable upside, analysts clearly believe RxSight is more favorable than Tactile Systems Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RxSight	-36.58%	-17.01%	-15.12%
Tactile Systems Technology	5.91%	9.70%	7.53%

Institutional and Insider Ownership

78.8% of RxSight shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 10.1% of RxSight shares are held by company insiders. Comparatively, 2.1% of Tactile Systems Technology shares are held 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.

Volatility & Risk

RxSight has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares RxSight and Tactile Systems Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RxSight	$134.48 million	1.94	-$38.94 million	($1.13)	-5.57
Tactile Systems Technology	$329.52 million	2.05	$19.09 million	$0.88	34.07

Tactile Systems Technology has higher revenue and earnings than RxSight. RxSight 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

Tactile Systems Technology beats RxSight on 10 of the 13 factors compared between the two stocks.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, 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.