Financial Analysis: Tandem Diabetes Care (NASDAQ:TNDM) versus Motus GI (NASDAQ:MOTS)

Tandem Diabetes Care (NASDAQ:TNDM) and Motus GI (NASDAQ:MOTS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

20.1% of Motus GI shares are owned by institutional investors. 2.2% of Tandem Diabetes Care shares are owned by company insiders. Comparatively, 0.3% of Motus GI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Tandem Diabetes Care and Motus GI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandem Diabetes Care	-14.84%	-44.19%	-11.99%
Motus GI	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for Tandem Diabetes Care and Motus GI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandem Diabetes Care	0	8	11	0	2.58
Motus GI	0	0	0	0	0.00

Tandem Diabetes Care currently has a consensus price target of $43.88, indicating a potential upside of 167.74%. Given Tandem Diabetes Care’s stronger consensus rating and higher possible upside, analysts plainly believe Tandem Diabetes Care is more favorable than Motus GI.

Volatility & Risk

Tandem Diabetes Care has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Motus GI has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tandem Diabetes Care and Motus GI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandem Diabetes Care	$940.20 million	1.16	-$222.61 million	($1.46)	-11.23
Motus GI	$319,000.00	0.00	-$12.87 million	($15.64)	0.00

Motus GI has lower revenue, but higher earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Motus GI, indicating that it is currently the more affordable of the two stocks.

Summary

Tandem Diabetes Care beats Motus GI on 8 of the 14 factors compared between the two stocks.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

About Motus GI

Motus GI Holdings, Inc. operates as a medical technology company in the United States. It develops Pure-Vu system, a medical device to facilitate the cleansing of a poorly prepared gastrointestinal tract during the colonoscopy and facilitates upper gastrointestinal endoscopy procedures. The company was formerly known as Eight-Ten Merger Corp. and changed its name to Motus GI Holdings, Inc. in November 2016. The company was founded in 2008 and is based in Fort Lauderdale, Florida.