Financial Analysis: Tactile Systems Technology (TCMD) vs. Its Competitors

Tactile Systems Technology (NASDAQ:TCMD) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its peers? We will compare Tactile Systems Technology to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Risk and Volatility

Tactile Systems Technology has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Tactile Systems Technology’s peers have a beta of 2.56, meaning that their average share price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

83.4% of Tactile Systems Technology shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 2.1% of Tactile Systems Technology shares are owned by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tactile Systems Technology and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tactile Systems Technology	$329.52 million	$19.09 million	22.94
Tactile Systems Technology Competitors	$1.87 billion	$138.21 million	10.91

Tactile Systems Technology’s peers have higher revenue and earnings than Tactile Systems Technology. Tactile Systems Technology is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	6.68%	10.82%	8.65%
Tactile Systems Technology Competitors	-278.24%	-150.08%	-21.87%

Analyst Recommendations

This is a summary of recent ratings and price targets for Tactile Systems Technology and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	4	0	2.67
Tactile Systems Technology Competitors	4262	10493	18230	825	2.46

Tactile Systems Technology currently has a consensus price target of $36.80, suggesting a potential upside of 48.51%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 22.95%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, research analysts plainly believe Tactile Systems Technology is more favorable than its peers.

Summary

Tactile Systems Technology beats its peers on 8 of the 13 factors compared.

Tactile Systems Technology Company Profile

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.