Tenon Medical (NASDAQ:TNON) and Positron (OTCMKTS:POSC) Critical Analysis

Tenon Medical (NASDAQ:TNON) and Positron (OTCMKTS:POSC) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

22.7% of Tenon Medical shares are owned by institutional investors. 0.3% of Tenon Medical shares are owned by insiders. Comparatively, 17.2% of Positron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tenon Medical and Positron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	1	0	2	0	2.33
Positron	0	0	0	0	0.00

Tenon Medical presently has a consensus target price of $3.00, indicating a potential upside of 278.36%. Given Tenon Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Tenon Medical is more favorable than Positron.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	-396.26%	-409.04%	-114.60%
Positron	N/A	-311.50%	-89.54%

Volatility & Risk

Tenon Medical has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Positron has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Tenon Medical and Positron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$3.28 million	2.69	-$13.67 million	($1.77)	-0.45
Positron	$590,000.00	114.31	-$2.39 million	($0.12)	-17.17

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

Positron Corporation, a nuclear medicine healthcare company, specializes in the business of cardiac positron emission tomography (PET) imaging in the United States. It offers attrius PET scanner, clinical and technical services, and financing solutions enables healthcare providers to accurately diagnose cardiac disease, improve patient outcomes, and practice cost effective medicines. Positron Corporation was incorporated in 1983 and is based in Niagara Falls, New York.