Analyzing Tandem Diabetes Care (NASDAQ:TNDM) & Orthofix Medical (NASDAQ:OFIX)

Tandem Diabetes Care (NASDAQ:TNDM) and Orthofix Medical (NASDAQ:OFIX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Institutional and Insider Ownership

80.9% of Tandem Diabetes Care shares are held by institutional investors. Comparatively, 94.4% of Orthofix Medical shares are held by institutional investors. 6.9% of Tandem Diabetes Care shares are held by company insiders. Comparatively, 5.8% of Orthofix Medical 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.

Volatility & Risk

Tandem Diabetes Care has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Orthofix Medical has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Tandem Diabetes Care and Orthofix Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tandem Diabetes Care 0 3 11 0 2.79
Orthofix Medical 0 1 1 0 2.50

Tandem Diabetes Care currently has a consensus price target of $71.43, suggesting a potential upside of 9.45%. Orthofix Medical has a consensus price target of $60.00, suggesting a potential upside of 13.44%. Given Orthofix Medical’s higher probable upside, analysts clearly believe Orthofix Medical is more favorable than Tandem Diabetes Care.

Earnings & Valuation

This table compares Tandem Diabetes Care and Orthofix Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tandem Diabetes Care $183.87 million 20.61 -$122.61 million ($2.55) -25.59
Orthofix Medical $453.04 million 2.23 $13.81 million $1.96 26.98

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

Profitability

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

Net Margins Return on Equity Return on Assets
Tandem Diabetes Care -19.55% -20.21% -12.33%
Orthofix Medical 2.09% 10.45% 7.52%

Summary

Orthofix Medical beats Tandem Diabetes Care on 10 of the 14 factors compared between the two stocks.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The company's flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:slim X2 Insulin Delivery System with Basal-IQ Technology; t:slim X2 with G5 Integration; and Tandem Device Updater that allows users to update their pump's software. In addition, the company offers t:connect diabetes management application, a cloud-based data management application, which provides a visual way to display therapy management data from the pump and supported blood glucose meters for users, their caregivers, and their healthcare providers; and various pump accessories. Its products in development include t:slim X2 with control IQ technology; t:sport insulin delivery system; and connected (mobile) health offerings. 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 founded in 2006 and is headquartered in San Diego, California.

About Orthofix Medical

Orthofix Medical Inc., a medical device company, provides musculoskeletal healing products and therapies worldwide. It operates through four segments: Bone Growth Therapies, Spinal Implants, Biologics, and Orthofix Extremities. The Bone Growth Therapies segment manufactures, distributes, and provides support services for bone growth stimulator devices that enhance bone fusion and are indicated as treatment to enhance fusion success rates in cervical and lumbar spine, as well as a therapeutic treatment for non-spinal appendicular fractures. The Spinal Implants segment designs, develops, and markets a portfolio of implant products used in surgical procedures of the spine. The Biologics segment provides a portfolio of regenerative products and tissue forms that allow physicians to treat a range of spinal and orthopedic conditions. The Orthofix Extremities segment designs, develops, and markets orthopedic products used in fracture repair, deformity correction, and bone reconstruction procedures. The company markets and distributes its products through direct sales representatives; independent distributors; and employed and independent sales representatives to physicians, hospitals, ambulatory surgery centers, integrated health delivery systems, and other purchasing organizations. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in July 2018. Orthofix Medical Inc. was founded in 1987 and is headquartered in Lewisville, Texas.

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