Head to Head Analysis: PolyPid (NASDAQ:PYPD) vs. Tandem Diabetes Care (NASDAQ:TNDM)

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

Insider & Institutional Ownership

26.5% of PolyPid shares are held by institutional investors. 24.7% of PolyPid shares are held by insiders. Comparatively, 1.9% of Tandem Diabetes Care shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

PolyPid has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PolyPid and Tandem Diabetes Care, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PolyPid	0	0	3	1	3.25
Tandem Diabetes Care	0	8	8	0	2.50

PolyPid currently has a consensus target price of $11.33, indicating a potential upside of 307.82%. Tandem Diabetes Care has a consensus target price of $37.47, indicating a potential upside of 80.82%. Given PolyPid’s stronger consensus rating and higher probable upside, equities analysts plainly believe PolyPid is more favorable than Tandem Diabetes Care.

Valuation and Earnings

This table compares PolyPid and Tandem Diabetes Care”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PolyPid	N/A	N/A	-$29.02 million	($4.30)	-0.65
Tandem Diabetes Care	$982.95 million	1.40	-$222.61 million	($2.78)	-7.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PolyPid	N/A	-624.10%	-129.28%
Tandem Diabetes Care	-14.84%	-44.19%	-11.99%

Summary

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

About PolyPid

PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.

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.