Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) and Beta Bionics (NASDAQ:BBNX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Risk & Volatility
Tactile Systems Technology has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.39, meaning that its share 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% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tactile Systems Technology | $329.52 million | 1.54 | $19.09 million | $1.08 | 20.78 |
| Beta Bionics | $100.25 million | 7.91 | -$73.20 million | ($1.65) | -10.68 |
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.
Insider & Institutional Ownership
83.4% of Tactile Systems Technology shares are owned by institutional investors. 2.1% of Tactile Systems Technology shares are owned by company insiders. Comparatively, 5.3% of Beta Bionics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets 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 | 8 | 1 | 2.64 |
Tactile Systems Technology presently has a consensus target price of $38.40, suggesting a potential upside of 71.12%. Beta Bionics has a consensus target price of $23.50, suggesting a potential upside of 33.30%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Tactile Systems Technology is more favorable than Beta Bionics.
Summary
Tactile Systems Technology beats Beta Bionics on 10 of the 15 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.
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