Critical Analysis: Tandem Diabetes Care (NASDAQ:TNDM) vs. Solana (NASDAQ:HSDT)

Solana (NASDAQ:HSDTGet Free Report) and Tandem Diabetes Care (NASDAQ:TNDMGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Solana has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Valuation and Earnings

This table compares Solana 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
Solana $520,000.00 149.32 -$11.74 million ($1,267.04) 0.00
Tandem Diabetes Care $1.01 billion 1.90 -$204.71 million ($3.07) -9.21

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Solana and Tandem Diabetes Care, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solana 1 0 0 0 1.00
Tandem Diabetes Care 1 11 6 1 2.37

Tandem Diabetes Care has a consensus target price of $28.00, indicating a potential downside of 0.92%. Given Tandem Diabetes Care’s stronger consensus rating and higher possible upside, analysts plainly believe Tandem Diabetes Care is more favorable than Solana.

Profitability

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

Net Margins Return on Equity Return on Assets
Solana -39,358.88% -699.93% -301.82%
Tandem Diabetes Care -20.17% -68.23% -11.07%

Insider & Institutional Ownership

18.6% of Solana shares are owned by institutional investors. 17.2% of Solana shares are owned by company insiders. Comparatively, 1.9% of Tandem Diabetes Care shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Tandem Diabetes Care beats Solana on 10 of the 15 factors compared between the two stocks.

About Solana

(Get Free Report)

Helius Medical Technologies, Inc., a neurotechnology company, focuses on developing, licensing, and acquiring non-implantable technologies for the treatment of symptoms caused by neurological disease or trauma. The company's product is Portable Neuromodulation Stimulator, a non-surgical medical device intended for use as a short term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury, as well as to be used in conjunction with supervised therapeutic exercise. The company was incorporated in 2014 and is headquartered in Newtown, Pennsylvania.

About Tandem Diabetes Care

(Get Free Report)

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.

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