Analyzing Apollo Endosurgery (APEN) and Tactile Systems Technology (TCMD)

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Apollo Endosurgery $64.87 1.10 -$41.16 ($36.74) -0.11
Tactile Systems Technology $84.54 5.63 $2.87 $0.25 108.04

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Apollo Endosurgery and Tactile Systems Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Endosurgery 0 0 3 0 3.00
Tactile Systems Technology 0 2 3 0 2.60

Given Apollo Endosurgery’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Endosurgery is more favorable than Tactile Systems Technology.

Volatility & Risk

Apollo Endosurgery has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of -0.57, suggesting that its stock price is 157% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Apollo Endosurgery -62.31% -98.11% -40.61%
Tactile Systems Technology 4.97% 3.05% 2.54%

Insider & Institutional Ownership

8.9% of Apollo Endosurgery shares are held by institutional investors. Comparatively, 45.7% of Tactile Systems Technology shares are held by institutional investors. 74.2% of Apollo Endosurgery shares are held by insiders. Comparatively, 49.9% of Tactile Systems Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Tactile Systems Technology beats Apollo Endosurgery on 8 of the 12 factors compared between the two stocks.

Apollo Endosurgery Company Profile

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.

Tactile Systems Technology Company Profile

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.

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