Critical Survey: Tactile Systems Technology (NASDAQ:TCMD) & Vapotherm (NASDAQ:VAPO)

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

Valuation & Earnings

This table compares Tactile Systems Technology and Vapotherm’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 $143.75 million 8.42 $6.62 million $0.34 187.06
Vapotherm $42.38 million 5.16 -$42.47 million ($13.83) -0.75

Tactile Systems Technology has higher revenue and earnings than Vapotherm. Vapotherm 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Tactile Systems Technology 5.06% 9.41% 7.44%
Vapotherm -110.06% -107.95% -50.80%

Institutional & Insider Ownership

97.9% of Tactile Systems Technology shares are owned by institutional investors. Comparatively, 56.0% of Vapotherm shares are owned by institutional investors. 6.5% of Tactile Systems Technology shares are owned by insiders. Comparatively, 34.4% of Vapotherm shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Tactile Systems Technology and Vapotherm, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tactile Systems Technology 0 2 5 0 2.71
Vapotherm 0 0 1 0 3.00

Tactile Systems Technology presently has a consensus price target of $75.33, indicating a potential upside of 18.45%. Vapotherm has a consensus price target of $27.00, indicating a potential upside of 160.12%. Given Vapotherm’s stronger consensus rating and higher probable upside, analysts clearly believe Vapotherm is more favorable than Tactile Systems Technology.

Risk and Volatility

Tactile Systems Technology has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, Vapotherm has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Summary

Tactile Systems Technology beats Vapotherm on 11 of the 14 factors compared between the two stocks.

Tactile Systems Technology Company Profile

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices for the treatment of chronic diseases in the United States. The company offers Flexitouch system, an at-home solution for lymphedema patients; and ACTitouch system, a home-based solution for chronic venous insufficiency patients. It also provides Entré System, a portable pneumatic compression device that is used for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers; and Airwear Gradient Compression Wrap management of venous insufficiency, venous hypertension, venous ulcerations and lymphedema under the trade name Aero-Wrap. The company was founded in 1995 and is headquartered in Minneapolis, Minnesota.

Vapotherm Company Profile

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary Hi-VNI technology products used to treat patients of various ages suffering from respiratory distress worldwide. The company offers precision flow systems, such as Precision Flow Hi-VNI, Precision Flow Plus, Precision Flow Classic, and Precision Flow Heliox that use Hi-VNI technology to deliver heated, humidified, and oxygenated air at a high velocity to patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit and Q50 compressor; and disposable products comprising single-use disposables and nasal interfaces. The company sells its products to hospitals. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.

Receive News & Ratings for Tactile Systems Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tactile Systems Technology and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News