Head to Head Analysis: DarioHealth (NASDAQ:DRIO) & Tactile Systems Technology (NASDAQ:TCMD)

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

Earnings and Valuation

This table compares DarioHealth and Tactile Systems Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$27.04 million	0.64	-$42.75 million	($13.20)	-0.58
Tactile Systems Technology	$292.98 million	1.01	$16.96 million	$0.62	21.39

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

Insider and Institutional Ownership

33.4% of DarioHealth shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 11.2% of DarioHealth shares are owned by insiders. Comparatively, 2.5% of Tactile Systems Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for DarioHealth and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	0	1	2	0	2.67
Tactile Systems Technology	0	4	0	1	2.40

DarioHealth currently has a consensus price target of $40.00, suggesting a potential upside of 423.56%. Tactile Systems Technology has a consensus price target of $13.50, suggesting a potential upside of 1.81%. Given DarioHealth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DarioHealth is more favorable than Tactile Systems Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-162.73%	-65.89%	-39.03%
Tactile Systems Technology	5.06%	7.72%	5.59%

Risk and Volatility

DarioHealth has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Summary

Tactile Systems Technology beats DarioHealth on 10 of the 15 factors compared between the two stocks.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.

About Tactile Systems Technology

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.