Tactile Systems Technology (NASDAQ:TCMD) and Boston Scientific (NYSE:BSX) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
99.7% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 91.6% of Boston Scientific shares are held by institutional investors. 6.5% of Tactile Systems Technology shares are held by insiders. Comparatively, 0.7% of Boston Scientific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Tactile Systems Technology and Boston Scientific’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||6.82||$6.62 million||$0.34||153.24|
|Boston Scientific||$9.82 billion||5.77||$1.67 billion||$1.47||27.70|
Boston Scientific has higher revenue and earnings than Tactile Systems Technology. Boston Scientific 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.
This is a summary of recent recommendations for Tactile Systems Technology and Boston Scientific, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tactile Systems Technology||0||2||5||0||2.71|
Tactile Systems Technology currently has a consensus price target of $73.67, indicating a potential upside of 41.39%. Boston Scientific has a consensus price target of $47.07, indicating a potential upside of 15.59%. Given Tactile Systems Technology’s higher probable upside, analysts clearly believe Tactile Systems Technology is more favorable than Boston Scientific.
This table compares Tactile Systems Technology and Boston Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tactile Systems Technology||5.06%||9.68%||7.92%|
Risk and Volatility
Tactile Systems Technology has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Boston Scientific has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Boston Scientific beats Tactile Systems Technology 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 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.
About Boston Scientific
Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions therapy products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels; and structural heart therapy systems. It also provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy systems, wires, and stents to treat venous diseases; and peripheral embolization devices, microcatheters, and drainage catheters to treat various cancers. In addition, the company offers cardiac rhythm management devices, such as implantable cardioverter defibrillator systems to treat abnormalities; remote patient management system; implantable cardiac resynchronization therapy pacemaker systems; and medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, mapping system, and other accessories. Further, it provides products to diagnose and treat diseases of the gastrointestinal and pulmonary conditions; devices to diagnose, treat, and palliate pulmonary diseases within the airway and lungs; products to treat various urological and pelvic conditions; deep brain stimulation systems for the treatment of parkinson's disease, tremor, and intractable primary and secondary dystonia; and spinal cord stimulator systems for the management of chronic pain. The company was founded in 1979 and is headquartered in Marlborough, Massachusetts.
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