Tactile Systems Technology (NASDAQ:TCMD) and Modular Medical (NASDAQ:MODD) Financial Contrast

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Modular Medical and Tactile Systems Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modular Medical	0	0	0	0	0.00
Tactile Systems Technology	0	3	0	0	2.00

Tactile Systems Technology has a consensus target price of $18.00, suggesting a potential upside of 38.46%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Tactile Systems Technology is more favorable than Modular Medical.

Volatility and Risk

Modular Medical has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Modular Medical	N/A	-197.97%	-162.31%
Tactile Systems Technology	5.79%	9.37%	6.75%

Institutional and Insider Ownership

27.5% of Modular Medical shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 20.5% of Modular Medical shares are held by insiders. Comparatively, 1.0% of Tactile Systems Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Modular Medical and Tactile Systems Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modular Medical	N/A	N/A	-$17.47 million	($0.53)	-2.08
Tactile Systems Technology	$292.98 million	1.05	$28.51 million	$0.70	18.57

Tactile Systems Technology has higher revenue and earnings than Modular Medical. Modular Medical 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 Modular Medical on 11 of the 12 factors compared between the two stocks.

About Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, 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.