Financial Contrast: Tactile Systems Technology (NASDAQ:TCMD) and Artivion (NYSE:AORT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	-7.24%	-3.11%	-1.48%
Artivion	-6.12%	0.74%	0.27%

Volatility and Risk

Tactile Systems Technology has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Artivion has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

84.0% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 88.0% of Artivion shares are held by institutional investors. 3.3% of Tactile Systems Technology shares are held by insiders. Comparatively, 5.6% of Artivion 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.

Earnings & Valuation

This table compares Tactile Systems Technology and Artivion’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$246.79 million	1.23	-$17.87 million	($0.89)	-16.83
Artivion	$313.79 million	1.52	-$19.19 million	($0.48)	-24.46

Tactile Systems Technology has higher earnings, but lower revenue than Artivion. Artivion 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 Recommendations

This is a breakdown of recent recommendations and price targets for Tactile Systems Technology and Artivion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	0	3	0	3.00
Artivion	0	1	3	0	2.75

Tactile Systems Technology presently has a consensus price target of $23.33, suggesting a potential upside of 55.76%. Artivion has a consensus price target of $22.50, suggesting a potential upside of 91.65%. Given Artivion’s higher probable upside, analysts plainly believe Artivion is more favorable than Tactile Systems Technology.

Summary

Artivion beats Tactile Systems Technology on 10 of the 13 factors compared between the two stocks.

About Tactile Systems Technology

(Get Rating)

Tactile Systems Technology, Inc. is a medical technology company. It develops and provides innovative medical devices for the treatment of chronic diseases at home. The firm focus on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising healthcare expenditures. The company was founded on January 30, 1995 and is headquartered in Minneapolis, MN.

About Artivion

(Get Rating)

Artivion, Inc. focuses on developing solutions that address cardiac and vascular surgeons’ clinical challenges in treating patients with aortic diseases. Its products include aortic stents and stent grafts, prosthetic heart valves, cryopreserved cardiac and vascular allografts, and surgical sealants. It operates through the Medical Devices and Preservation Services segments. The Medical Devices segment includes aortic stents and stent grafts, surgical sealants, and On-X products. The Preservation Services segment provides cardiac and vascular tissue preservation services. The company was founded on January 19, 1984 and is headquartered in Kennesaw, GA.