Financial Comparison: Tenon Medical (NASDAQ:TNON) & Waters (NYSE:WAT)

Tenon Medical (NASDAQ:TNON) and Waters (NYSE:WAT) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

22.7% of Tenon Medical shares are held by institutional investors. Comparatively, 94.0% of Waters shares are held by institutional investors. 0.3% of Tenon Medical shares are held by company insiders. Comparatively, 0.8% of Waters shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Tenon Medical and Waters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	-396.26%	-409.04%	-114.60%
Waters	20.89%	36.59%	16.18%

Volatility and Risk

Tenon Medical has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Waters has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Tenon Medical and Waters, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	1	0	2	0	2.33
Waters	0	9	10	1	2.60

Tenon Medical currently has a consensus price target of $3.00, suggesting a potential upside of 217.46%. Waters has a consensus price target of $398.61, suggesting a potential upside of 2.31%. Given Tenon Medical’s higher probable upside, equities analysts clearly believe Tenon Medical is more favorable than Waters.

Earnings & Valuation

This table compares Tenon Medical and Waters”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$3.28 million	3.20	-$13.67 million	($1.77)	-0.53
Waters	$2.96 billion	7.84	$637.83 million	$10.88	35.81

Waters has higher revenue and earnings than Tenon Medical. Tenon Medical is trading at a lower price-to-earnings ratio than Waters, indicating that it is currently the more affordable of the two stocks.

Summary

Waters beats Tenon Medical on 13 of the 15 factors compared between the two stocks.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

About Waters

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments: Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Further, the company provides thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.