Critical Comparison: RenovoRx (NASDAQ:RNXT) versus Tactile Systems Technology (NASDAQ:TCMD)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for RenovoRx and Tactile Systems Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenovoRx	1	0	2	1	2.75
Tactile Systems Technology	0	2	4	0	2.67

RenovoRx presently has a consensus target price of $8.50, suggesting a potential upside of 574.60%. Tactile Systems Technology has a consensus target price of $37.60, suggesting a potential upside of 64.41%. Given RenovoRx’s stronger consensus rating and higher probable upside, equities analysts clearly believe RenovoRx is more favorable than Tactile Systems Technology.

Institutional & Insider Ownership

3.1% of RenovoRx shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 9.4% of RenovoRx shares are owned by company insiders. Comparatively, 2.1% 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 will outperform the market over the long term.

Valuation & Earnings

This table compares RenovoRx 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
RenovoRx	$1.98 million	28.78	-$11.17 million	($0.31)	-4.06
Tactile Systems Technology	$329.52 million	1.57	$19.09 million	$1.08	21.18

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

Risk & Volatility

RenovoRx has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RenovoRx	-621.71%	-135.11%	-101.91%
Tactile Systems Technology	7.10%	11.49%	9.17%

Summary

Tactile Systems Technology beats RenovoRx on 9 of the 15 factors compared between the two stocks.

About RenovoRx

RenovoRx, Inc., a clinical-stage biopharmaceutical company, focuses on developing proprietary targeted combination therapies to improve therapeutic outcomes for cancer patients undergoing treatment. Its lead product candidate is RenovoGem, an oncology drug-device combination product, consisting of intra-arterial gemcitabine and RenovoCath that is in Phase III clinical trials for the locally advanced pancreatic cancer. The company has a research collaboration with Imugene Limited to deliver oncolytic virus therapy for the treatment of difficult-to-access tumors. RenovoRx, Inc. was founded in 2009 and is headquartered in Los Altos, 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.