TELA Bio (NASDAQ:TELA – Get Free Report) and Electromed (NYSE:ELMD – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility & Risk
TELA Bio has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Electromed has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for TELA Bio and Electromed, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELA Bio | 1 | 1 | 3 | 0 | 2.40 |
| Electromed | 0 | 1 | 3 | 0 | 2.75 |
Institutional & Insider Ownership
94.3% of TELA Bio shares are held by institutional investors. Comparatively, 40.8% of Electromed shares are held by institutional investors. 5.1% of TELA Bio shares are held by insiders. Comparatively, 10.5% of Electromed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares TELA Bio and Electromed”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELA Bio | $80.28 million | 0.51 | -$38.83 million | ($0.77) | -1.18 |
| Electromed | $73.78 million | 3.07 | $5.15 million | $1.31 | 20.66 |
Electromed has lower revenue, but higher earnings than TELA Bio. TELA Bio is trading at a lower price-to-earnings ratio than Electromed, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TELA Bio and Electromed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TELA Bio | -51.53% | -1,320.81% | -59.39% |
| Electromed | 11.34% | 15.71% | 13.37% |
Summary
Electromed beats TELA Bio on 9 of the 13 factors compared between the two stocks.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
About Electromed
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy and amyotrophic lateral sclerosis; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products to hospitals, home health care centers, pulmonary rehabilitation centers, cystic fibrosis centers, neuromuscular clinics, and other clinics through distributors. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.
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