Tactile Systems Technology (NASDAQ:TCMD) vs. Beta Bionics (NASDAQ:BBNX) Head-To-Head Review

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

Earnings & Valuation

This table compares Beta Bionics and Tactile Systems Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$100.25 million	7.91	-$73.20 million	($1.65)	-10.68
Tactile Systems Technology	$329.52 million	1.54	$19.09 million	$1.08	20.78

Tactile Systems Technology has higher revenue and earnings than Beta Bionics. Beta Bionics 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Beta Bionics and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	4	8	1	2.64
Tactile Systems Technology	0	2	4	0	2.67

Beta Bionics presently has a consensus target price of $23.50, suggesting a potential upside of 33.30%. Tactile Systems Technology has a consensus target price of $38.40, suggesting a potential upside of 71.12%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Tactile Systems Technology is more favorable than Beta Bionics.

Volatility and Risk

Beta Bionics has a beta of 3.39, indicating that its share price is 239% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. 5.3% of Beta Bionics shares are held by insiders. Comparatively, 2.1% of Tactile Systems Technology shares are held 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.

Profitability

This table compares Beta Bionics and Tactile Systems Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-61.31%	-26.30%	-23.25%
Tactile Systems Technology	7.10%	11.49%	9.17%

Summary

Tactile Systems Technology beats Beta Bionics on 10 of the 15 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

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.