Head to Head Review: Modular Medical (NASDAQ:MODD) versus Tactile Systems Technology (NASDAQ:TCMD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Modular Medical	N/A	-197.97%	-162.31%
Tactile Systems Technology	5.79%	9.37%	6.75%

Risk & Volatility

Modular Medical has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares Modular Medical and Tactile Systems Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modular Medical	N/A	N/A	-$17.47 million	($0.53)	-1.66
Tactile Systems Technology	$292.98 million	1.07	$28.51 million	$0.70	18.84

Tactile Systems Technology has higher revenue and earnings than Modular Medical. Modular Medical 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 recent recommendations for Modular Medical and Tactile Systems Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modular Medical	0	0	0	0	0.00
Tactile Systems Technology	0	3	0	0	2.00

Tactile Systems Technology has a consensus target price of $18.00, suggesting a potential upside of 36.47%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Tactile Systems Technology is more favorable than Modular Medical.

Insider & Institutional Ownership

27.5% of Modular Medical shares are held by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are held by institutional investors. 20.5% of Modular Medical shares are held by company insiders. Comparatively, 1.0% of Tactile Systems Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Tactile Systems Technology beats Modular Medical on 11 of the 12 factors compared between the two stocks.

About Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, California.

About Tactile Systems Technology

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.