Reviewing RenovoRx (NASDAQ:RNXT) and Tactile Systems Technology (NASDAQ:TCMD)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$329.52 million	1.67	$19.09 million	$1.08	22.51
RenovoRx	$1.98 million	34.03	-$11.17 million	($0.31)	-4.81

Tactile Systems Technology has higher revenue and earnings than RenovoRx. RenovoRx 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 Ratings

This is a summary of recent recommendations and price targets for Tactile Systems Technology and RenovoRx, 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
RenovoRx	1	0	2	1	2.75

Tactile Systems Technology presently has a consensus target price of $37.60, suggesting a potential upside of 54.67%. RenovoRx has a consensus target price of $8.50, suggesting a potential upside of 470.47%. Given RenovoRx’s stronger consensus rating and higher probable upside, analysts plainly believe RenovoRx is more favorable than Tactile Systems Technology.

Profitability

This table compares Tactile Systems Technology and RenovoRx’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%
RenovoRx	-621.71%	-135.11%	-101.91%

Risk and Volatility

Tactile Systems Technology has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, RenovoRx has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 3.1% of RenovoRx shares are held by institutional investors. 2.1% of Tactile Systems Technology shares are held by company insiders. Comparatively, 9.4% of RenovoRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Tactile Systems Technology beats RenovoRx on 9 of the 15 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 RenovoRx

RenovoRx, Inc., a clinical-stage biopharmaceutical company, focuses on developing proprietary targeted combination therapies to improve therapeutic outcomes for cancer patients undergoing treatment. Its lead product candidate is RenovoGem, an oncology drug-device combination product, consisting of intra-arterial gemcitabine and RenovoCath that is in Phase III clinical trials for the locally advanced pancreatic cancer. The company has a research collaboration with Imugene Limited to deliver oncolytic virus therapy for the treatment of difficult-to-access tumors. RenovoRx, Inc. was founded in 2009 and is headquartered in Los Altos, California.