Tandem Diabetes Care (NASDAQ:TNDM) versus RA Medical Systems (NASDAQ:RMED) Critical Comparison

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

Insider & Institutional Ownership

79.8% of Tandem Diabetes Care shares are held by institutional investors. Comparatively, 20.1% of RA Medical Systems shares are held by institutional investors. 6.9% of Tandem Diabetes Care shares are held by insiders. Comparatively, 25.2% of RA Medical Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tandem Diabetes Care and RA Medical Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tandem Diabetes Care $183.87 million 18.74 -$122.61 million ($2.55) -23.04
RA Medical Systems $6.26 million 3.72 -$30.83 million ($3.34) -0.54

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

Profitability

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

Net Margins Return on Equity Return on Assets
Tandem Diabetes Care -19.55% -19.31% -11.55%
RA Medical Systems N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tandem Diabetes Care and RA Medical Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tandem Diabetes Care 0 3 11 0 2.79
RA Medical Systems 0 2 2 0 2.50

Tandem Diabetes Care presently has a consensus target price of $71.43, indicating a potential upside of 21.56%. RA Medical Systems has a consensus target price of $6.38, indicating a potential upside of 254.17%. Given RA Medical Systems’ higher probable upside, analysts plainly believe RA Medical Systems is more favorable than Tandem Diabetes Care.

Summary

RA Medical Systems beats Tandem Diabetes Care on 7 of the 13 factors compared between the two stocks.

Tandem Diabetes Care Company Profile

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.

RA Medical Systems Company Profile

Ra Medical Systems, Inc., a commercial-stage medical device company, develops, manufactures, and markets excimer lasers for use in the treatment of vascular and dermatological diseases. The company offers DABRA (destruction of arteriosclerotic blockages by laser radiation ablation), a minimally-invasive excimer laser and disposable catheter system that is used by physicians in the endovascular treatment of vascular blockages resulting from lower extremity vascular disease. It also provides Pharos, an excimer laser device that emits highly concentrated ultraviolet light used in the treatment of dermatological skin disorders. The company sells its products primarily through its direct sales force in the United States. Ra Medical Systems, Inc. was founded in 2002 and is headquartered in Carlsbad, California.

Receive News & Ratings for Tandem Diabetes Care Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tandem Diabetes Care and related companies with MarketBeat.com's FREE daily email newsletter.