Tactile Systems Technology (TCMD) and Apollo Endosurgery (APEN) Financial Analysis

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

Institutional and Insider Ownership

45.7% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 8.9% of Apollo Endosurgery shares are held by institutional investors. 49.9% of Tactile Systems Technology shares are held by insiders. Comparatively, 74.2% of Apollo Endosurgery shares are held 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.

Analyst Ratings

This is a summary of current ratings and price targets for Tactile Systems Technology and Apollo Endosurgery, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tactile Systems Technology 0 1 2 0 2.67
Apollo Endosurgery 0 0 3 0 3.00

Tactile Systems Technology presently has a consensus target price of $33.00, suggesting a potential upside of 5.23%. Apollo Endosurgery has a consensus target price of $11.00, suggesting a potential upside of 111.13%. Given Apollo Endosurgery’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Endosurgery is more favorable than Tactile Systems Technology.

Earnings & Valuation

This table compares Tactile Systems Technology and Apollo Endosurgery’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tactile Systems Technology $97.23 million 5.67 $3.09 million $0.25 125.44
Apollo Endosurgery $63.01 million 1.43 -$10.53 million N/A N/A

Tactile Systems Technology has higher revenue and earnings than Apollo Endosurgery.

Risk and Volatility

Tactile Systems Technology has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Apollo Endosurgery has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Tactile Systems Technology 4.97% 3.05% 2.54%
Apollo Endosurgery -81.59% -142.98% -54.80%

Summary

Tactile Systems Technology beats Apollo Endosurgery on 7 of the 12 factors compared between the two stocks.

About Tactile Systems Technology

Tactile Systems Technology, Inc. is a medical technology company that develops and provides medical devices for the treatment of chronic diseases at home. The Company is a manufacturer and distributor of the Flexitouch and Entre Systems, medical devices that help control symptoms of lymphedema, a chronic and progressive medical condition that is often an unintended consequence of cancer treatment, and the ACTitouch System, a medical device used to treat venous leg ulcers and chronic venous insufficiency. Its products deliver long-term treatment of chronic diseases. The Company provides its products for use in the home and sells them through vascular, wound and lymphedema clinics throughout the United States. The Company offers a platform to deliver at-home healthcare solutions throughout the United States. Its initial area of therapeutic focus is vascular disease, with a focus on advancing the care in treating lymphedema and chronic venous insufficiency.

About Apollo Endosurgery

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.

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