Reviewing Hyperfine (NASDAQ:HYPR) and Treace Medical Concepts (NASDAQ:TMCI)

Hyperfine (NASDAQ:HYPR) and Treace Medical Concepts (NASDAQ:TMCI) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Hyperfine has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Valuation & Earnings

This table compares Hyperfine and Treace Medical Concepts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$16.54 million	4.96	-$35.57 million	($0.38)	-2.03
Treace Medical Concepts	$212.69 million	1.25	-$59.00 million	($0.93)	-4.40

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Hyperfine and Treace Medical Concepts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	1	1	3	0	2.40
Treace Medical Concepts	2	4	1	0	1.86

Hyperfine presently has a consensus target price of $2.03, suggesting a potential upside of 163.04%. Treace Medical Concepts has a consensus target price of $5.17, suggesting a potential upside of 26.41%. Given Hyperfine’s stronger consensus rating and higher possible upside, research analysts clearly believe Hyperfine is more favorable than Treace Medical Concepts.

Institutional & Insider Ownership

15.0% of Hyperfine shares are owned by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are owned by institutional investors. 26.3% of Hyperfine shares are owned by company insiders. Comparatively, 23.4% of Treace Medical Concepts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hyperfine and Treace Medical Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-210.75%	-97.88%	-61.81%
Treace Medical Concepts	-28.99%	-71.37%	-30.49%

Summary

Hyperfine beats Treace Medical Concepts on 8 of the 14 factors compared between the two stocks.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.