Contrasting Tactile Systems Technology (NASDAQ:TCMD) and Beta Bionics (NASDAQ:BBNX)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$350.31 million	1.46	$19.09 million	$1.08	20.85
Beta Bionics	$100.25 million	7.34	-$73.20 million	($1.65)	-9.91

Tactile Systems Technology has higher revenue and earnings than Beta Bionics. Beta Bionics 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.

Analyst Recommendations

This is a breakdown of recent ratings for Tactile Systems Technology and Beta Bionics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	4	0	2.67
Beta Bionics	1	4	9	1	2.67

Tactile Systems Technology currently has a consensus price target of $37.60, suggesting a potential upside of 66.96%. Beta Bionics has a consensus price target of $24.00, suggesting a potential upside of 46.79%. Given Tactile Systems Technology’s higher probable upside, research analysts plainly believe Tactile Systems Technology is more favorable than Beta Bionics.

Risk and Volatility

Tactile Systems Technology has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.39, meaning that its stock price is 239% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	7.10%	11.49%	9.17%
Beta Bionics	-61.31%	-26.30%	-23.25%

Insider & Institutional Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. 2.1% of Tactile Systems Technology shares are held by company insiders. Comparatively, 5.3% of Beta Bionics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Tactile Systems Technology beats Beta Bionics on 9 of the 14 factors compared between the two stocks.

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.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.