Financial Comparison: Tenon Medical (NASDAQ:TNON) vs. Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and Tenon Medical (NASDAQ:TNON) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hyperfine and Tenon Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	1	2	2	0	2.20
Tenon Medical	1	0	1	0	2.00

Hyperfine currently has a consensus target price of $1.45, suggesting a potential upside of 19.83%. Given Hyperfine’s stronger consensus rating and higher possible upside, research analysts clearly believe Hyperfine is more favorable than Tenon Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-262.29%	-95.09%	-71.11%
Tenon Medical	-318.36%	-409.16%	-110.06%

Valuation and Earnings

This table compares Hyperfine and Tenon Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$11.40 million	10.40	-$35.57 million	($0.44)	-2.75
Tenon Medical	$3.94 million	2.21	-$12.56 million	($1.99)	-0.39

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

Insider & Institutional Ownership

15.0% of Hyperfine shares are owned by institutional investors. Comparatively, 22.7% of Tenon Medical shares are owned by institutional investors. 31.0% of Hyperfine shares are owned by insiders. Comparatively, 0.3% of Tenon Medical shares are owned by 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.

Risk and Volatility

Hyperfine has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Hyperfine beats Tenon Medical on 10 of the 14 factors compared between the two stocks.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

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.