Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) and Adagio Medical (NASDAQ:ADGM – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Insider and Institutional Ownership
84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 48.1% of Adagio Medical shares are held by institutional investors. 27.7% of Treace Medical Concepts shares are held by company insiders. Comparatively, 5.2% of Adagio Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Treace Medical Concepts and Adagio Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Treace Medical Concepts | -22.89% | -49.49% | -24.27% |
| Adagio Medical | N/A | -791.01% | -199.58% |
Volatility and Risk
Analyst Ratings
This is a breakdown of current ratings and price targets for Treace Medical Concepts and Adagio Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Treace Medical Concepts | 2 | 4 | 0 | 0 | 1.67 |
| Adagio Medical | 1 | 0 | 1 | 0 | 2.00 |
Treace Medical Concepts currently has a consensus price target of $6.57, suggesting a potential upside of 152.69%. Adagio Medical has a consensus price target of $4.00, suggesting a potential upside of 359.24%. Given Adagio Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Adagio Medical is more favorable than Treace Medical Concepts.
Valuation and Earnings
This table compares Treace Medical Concepts and Adagio Medical”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Treace Medical Concepts | $209.36 million | 0.79 | -$55.74 million | ($0.80) | -3.25 |
| Adagio Medical | $600,000.00 | 22.33 | -$75.04 million | ($1.52) | -0.57 |
Treace Medical Concepts has higher revenue and earnings than Adagio Medical. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Adagio Medical, indicating that it is currently the more affordable of the two stocks.
Summary
Treace Medical Concepts beats Adagio Medical on 8 of the 14 factors compared between the two stocks.
About Treace Medical Concepts
Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.
About Adagio Medical
Adagio Medical Holdings, Inc., a developmental stage medical device company, focuses on the development and commercialization of ablation technologies for the treatment of cardiac arrhythmias. It offers treatment for cardiac arrhythmias, including atrial fibrillation, atrial flutter, and ventricular tachycardia. The company’s product portfolio includes iCLAS atrial ultra-low temperature cryoablation (ULTC) catheter and accessories; vCLAS ventricular ULTC catheter; and Cryopulse atrial pulsed-field cryoablation catheter and accessories. The company is based in Laguna Hills, California.
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