Head to Head Analysis: ClearPoint Neuro (NASDAQ:CLPT) versus Tactile Systems Technology (NASDAQ:TCMD)

Tactile Systems Technology (NASDAQ:TCMD) and ClearPoint Neuro (NASDAQ:CLPT) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

83.4% of Tactile Systems Technology shares are owned by institutional investors. Comparatively, 30.1% of ClearPoint Neuro shares are owned by institutional investors. 2.1% of Tactile Systems Technology shares are owned by company insiders. Comparatively, 6.9% of ClearPoint Neuro shares are owned by company 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.

Profitability

This table compares Tactile Systems Technology and ClearPoint Neuro’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%
ClearPoint Neuro	-81.76%	-188.09%	-40.88%

Earnings and Valuation

This table compares Tactile Systems Technology and ClearPoint Neuro”s 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	1.56	$19.09 million	$1.08	21.01
ClearPoint Neuro	$36.97 million	13.03	-$25.54 million	($1.18)	-13.38

Tactile Systems Technology has higher revenue and earnings than ClearPoint Neuro. ClearPoint Neuro 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.

Volatility & Risk

Tactile Systems Technology has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, ClearPoint Neuro has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tactile Systems Technology and ClearPoint Neuro, 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
ClearPoint Neuro	1	0	2	0	2.33

Tactile Systems Technology presently has a consensus price target of $38.40, indicating a potential upside of 69.20%. ClearPoint Neuro has a consensus price target of $25.67, indicating a potential upside of 62.55%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tactile Systems Technology is more favorable than ClearPoint Neuro.

Summary

Tactile Systems Technology beats ClearPoint Neuro on 11 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 ClearPoint Neuro

ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. It develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. The company offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. It has license and collaboration agreement with Clinical Laserthermia Systems AB; license and research agreement with Koninklijke Philips N.V., UCB Biopharma SRL, and University of California and San Francisco; and development and license agreement with NE Scientific, LLC. The company was formerly known as MRI Interventions, Inc. and changed its name to ClearPoint Neuro, Inc. in February 2020. ClearPoint Neuro, Inc. was incorporated in 1998 and is headquartered in Solana Beach, California.