Comparing Tenon Medical (NASDAQ:TNON) & Atrion (NASDAQ:ATRI)

Tenon Medical (NASDAQ:TNON) and Atrion (NASDAQ:ATRI) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tenon Medical and Atrion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	0	0	1	0	3.00
Atrion	0	0	0	0	N/A

Tenon Medical presently has a consensus target price of $3.00, suggesting a potential upside of 563.72%. Given Tenon Medical’s higher probable upside, equities analysts clearly believe Tenon Medical is more favorable than Atrion.

Institutional & Insider Ownership

22.7% of Tenon Medical shares are owned by institutional investors. Comparatively, 66.2% of Atrion shares are owned by institutional investors. 4.7% of Tenon Medical shares are owned by company insiders. Comparatively, 22.8% of Atrion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Tenon Medical has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Atrion has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Tenon Medical and Atrion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	-445.77%	-1,267.31%	-181.71%
Atrion	10.60%	7.75%	7.12%

Valuation & Earnings

This table compares Tenon Medical and Atrion’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$3.21 million	0.53	-$15.58 million	($6.69)	-0.07
Atrion	$181.60 million	4.45	$19.41 million	$10.64	43.18

Atrion has higher revenue and earnings than Tenon Medical. Tenon Medical is trading at a lower price-to-earnings ratio than Atrion, indicating that it is currently the more affordable of the two stocks.

Summary

Atrion beats Tenon Medical on 10 of the 13 factors compared between the two stocks.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

About Atrion

Atrion Corporation, together with its subsidiaries, develops, manufactures, and sells products for fluid delivery, cardiovascular, and ophthalmic applications in the United States, Canada, Europe, and internationally. The company's fluid delivery products include valves that fill, hold, and release controlled amounts of fluids or gasses for use in various intubation, intravenous, catheter, and other applications in the anesthesia and oncology fields, as well as promote infection control in hospital and home healthcare environments. Its cardiovascular products comprise Myocardial Protection System that delivers fluids and medications, and mixes critical drugs, as well as controls temperature, pressure, and other variables; cardiac surgery vacuum relief valves; silicone vessel loops for retracting and occluding vessels; and inflation devices for balloon catheter dilation, stent deployment, and fluid dispensing, as well as products for use in heart bypass surgery. The company's ophthalmic products consist of a line of balloon catheters, which are used for the treatment of nasolacrimal duct obstruction in children and adults. It manufactures products for safe needle and scalpel blade containment; inflation systems and valves used in marine and aviation safety products; components used in inflatable survival products and structures; and one-way and two-way pressure relief valves that protect sensitive electronics and other products during transport in other medical and non-medical applications. The company sells its products to physicians, hospitals, clinics, and other treatment centers; and other equipment manufacturers through direct sales force, independent sales representatives, and distributors. Atrion Corporation was founded in 1944 and is headquartered in Allen, Texas.