Financial Comparison: Tenon Medical (NASDAQ:TNON) & Glaukos (NYSE:GKOS)

Tenon Medical (NASDAQ:TNON) and Glaukos (NYSE:GKOS) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tenon Medical and Glaukos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	1	0	1	0	2.00
Glaukos	1	1	13	1	2.88

Glaukos has a consensus price target of $216.71, suggesting a potential downside of 12.62%. Given Glaukos’ stronger consensus rating and higher possible upside, analysts clearly believe Glaukos is more favorable than Tenon Medical.

Volatility & Risk

Tenon Medical has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Glaukos has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Tenon Medical and Glaukos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	-257.85%	-907.60%	-124.84%
Glaukos	-24.60%	-0.97%	-0.71%

Valuation & Earnings

This table compares Tenon Medical and Glaukos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$3.94 million	1.30	-$12.56 million	($44.87)	-0.04
Glaukos	$507.44 million	28.93	-$187.69 million	($2.94)	-84.35

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

Insider and Institutional Ownership

22.7% of Tenon Medical shares are owned by institutional investors. Comparatively, 99.0% of Glaukos shares are owned by institutional investors. 17.7% of Tenon Medical shares are owned by company insiders. Comparatively, 5.9% of Glaukos shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Glaukos beats Tenon Medical on 11 of the 15 factors compared between the two stocks.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

About Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.