Head-To-Head Survey: Tactile Systems Technology (NASDAQ:TCMD) vs. NeuroMetrix (NASDAQ:NURO)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for NeuroMetrix and Tactile Systems Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeuroMetrix	0	0	0	0	0.00
Tactile Systems Technology	0	4	0	0	2.00

Tactile Systems Technology has a consensus target price of $16.00, indicating a potential upside of 65.80%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Tactile Systems Technology is more favorable than NeuroMetrix.

Risk and Volatility

NeuroMetrix has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares NeuroMetrix and Tactile Systems Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeuroMetrix	$3.03 million	3.09	-$6.53 million	($4.59)	-0.99
Tactile Systems Technology	$293.16 million	0.77	$28.51 million	$0.66	14.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeuroMetrix	-203.71%	-42.56%	-39.26%
Tactile Systems Technology	5.79%	9.37%	6.75%

Institutional and Insider Ownership

19.4% of NeuroMetrix shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 7.3% of NeuroMetrix shares are held by insiders. Comparatively, 2.5% of Tactile Systems Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

About NeuroMetrix

NeuroMetrix, Inc., a commercial stage neurotechnology company, engages in designing, building, and marketing medical devices that stimulate and analyze nerve response for diagnostic and therapeutic purposes in the United States, Europe, Japan, and China. Its marketed products include DPNCheck, a nerve conduction test that is used to evaluate peripheral neuropathies, such as diabetic peripheral neuropathy; Quell, a wearable device for symptomatic relief and management of chronic pain; and ADVANCE system offers services to device and provide disposable electrodes to a customer base of hand surgeons and manufacturers for industrial health use. The company offers its products to managed care organizations, endocrinologists, podiatrists, and primary care physicians; occupational health, primary care, internal medicine, orthopedic, and hand surgeons; and pain medicine physicians, neurologists, physical medicine and rehabilitation physicians, and neurosurgeons. NeuroMetrix, Inc. was incorporated in 1996 and is headquartered in Woburn, Massachusetts.

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.