Alpha Tau Medical (NASDAQ:DRTS) vs. Treace Medical Concepts (NASDAQ:TMCI) Head-To-Head Review
by Doug Wharley · The Cerbat GemAlpha Tau Medical (NASDAQ:DRTS – Get Free Report) and Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) 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, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Alpha Tau Medical and Treace Medical Concepts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alpha Tau Medical | 1 | 2 | 2 | 0 | 2.20 |
| Treace Medical Concepts | 2 | 4 | 1 | 0 | 1.86 |
Alpha Tau Medical currently has a consensus price target of $8.67, indicating a potential upside of 8.95%. Treace Medical Concepts has a consensus price target of $4.77, indicating a potential upside of 140.42%. Given Treace Medical Concepts’ higher probable upside, analysts plainly believe Treace Medical Concepts is more favorable than Alpha Tau Medical.
Institutional and Insider Ownership
2.7% of Alpha Tau Medical shares are owned by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are owned by institutional investors. 39.5% of Alpha Tau Medical shares are owned by company insiders. Comparatively, 23.4% of Treace Medical Concepts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Alpha Tau Medical and Treace Medical Concepts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alpha Tau Medical | N/A | -57.29% | -42.39% |
| Treace Medical Concepts | -27.74% | -59.91% | -28.44% |
Volatility and Risk
Alpha Tau Medical has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Alpha Tau Medical and Treace Medical Concepts”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alpha Tau Medical | N/A | N/A | -$42.63 million | ($0.53) | -15.01 |
| Treace Medical Concepts | $212.69 million | 0.60 | -$59.00 million | ($0.94) | -2.11 |
Alpha Tau Medical has higher earnings, but lower revenue than Treace Medical Concepts. Alpha Tau Medical is trading at a lower price-to-earnings ratio than Treace Medical Concepts, indicating that it is currently the more affordable of the two stocks.
Summary
Alpha Tau Medical beats Treace Medical Concepts on 8 of the 13 factors compared between the two stocks.
About Alpha Tau Medical
Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.
About Treace Medical Concepts
Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.