Head-To-Head Analysis: Hyperfine (NASDAQ:HYPR) vs. Treace Medical Concepts (NASDAQ:TMCI)

Treace Medical Concepts (NASDAQ:TMCI) and Hyperfine (NASDAQ:HYPR) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Treace Medical Concepts and Hyperfine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
Hyperfine	1	1	3	0	2.40

Treace Medical Concepts presently has a consensus target price of $5.17, suggesting a potential upside of 26.41%. Hyperfine has a consensus target price of $2.03, suggesting a potential upside of 163.04%. Given Hyperfine’s stronger consensus rating and higher probable upside, analysts clearly believe Hyperfine is more favorable than Treace Medical Concepts.

Insider and Institutional Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 15.0% of Hyperfine shares are held by institutional investors. 23.4% of Treace Medical Concepts shares are held by insiders. Comparatively, 26.3% of Hyperfine shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Treace Medical Concepts and Hyperfine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-28.99%	-71.37%	-30.49%
Hyperfine	-210.75%	-97.88%	-61.81%

Volatility and Risk

Treace Medical Concepts has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Hyperfine has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Earnings & Valuation

This table compares Treace Medical Concepts and Hyperfine”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	1.25	-$59.00 million	($0.93)	-4.40
Hyperfine	$16.54 million	4.96	-$35.57 million	($0.38)	-2.03

Hyperfine has lower revenue, but higher earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Hyperfine, indicating that it is currently the more affordable of the two stocks.

Summary

Hyperfine beats Treace Medical Concepts 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 Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.