Head-To-Head Comparison: Tactile Systems Technology (NASDAQ:TCMD) versus Spectral AI (NASDAQ:MDAI)

Tactile Systems Technology (NASDAQ:TCMD) and Spectral AI (NASDAQ:MDAI) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

This table compares Tactile Systems Technology and Spectral AI’s 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%
Spectral AI	-69.27%	N/A	-78.56%

Volatility and Risk

Tactile Systems Technology has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Spectral AI has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tactile Systems Technology and Spectral AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	4	0	2.67
Spectral AI	1	0	1	1	2.67

Tactile Systems Technology presently has a consensus price target of $38.40, suggesting a potential upside of 75.74%. Spectral AI has a consensus price target of $4.00, suggesting a potential upside of 152.37%. Given Spectral AI’s higher probable upside, analysts plainly believe Spectral AI is more favorable than Tactile Systems Technology.

Institutional & Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 67.1% of Spectral AI shares are held by institutional investors. 2.1% of Tactile Systems Technology shares are held by company insiders. Comparatively, 13.7% of Spectral AI shares are held 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.

Earnings & Valuation

This table compares Tactile Systems Technology and Spectral AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$329.52 million	1.50	$19.09 million	$1.08	20.23
Spectral AI	$19.65 million	2.60	-$7.57 million	($0.35)	-4.53

Tactile Systems Technology has higher revenue and earnings than Spectral AI. Spectral AI 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.

Summary

Tactile Systems Technology beats Spectral AI on 9 of the 14 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 Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.