Tactile Systems Technology (NASDAQ:TCMD) & Sysmex (OTCMKTS:SSMXY) Head to Head Comparison
by Michael Walen · The Markets DailySysmex (OTCMKTS:SSMXY – Get Free Report) and Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Institutional and Insider Ownership
83.4% of Tactile Systems Technology shares are owned by institutional investors. 2.5% of Tactile Systems Technology shares are owned 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.
Earnings & Valuation
This table compares Sysmex and Tactile Systems Technology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sysmex | $3.34 billion | 1.59 | $357.79 million | $0.48 | 17.63 |
| Tactile Systems Technology | $329.52 million | 1.80 | $19.09 million | $0.83 | 31.45 |
Sysmex has higher revenue and earnings than Tactile Systems Technology. Sysmex 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 Ratings
This is a breakdown of current ratings and target prices for Sysmex and Tactile Systems Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sysmex | 0 | 2 | 1 | 0 | 2.33 |
| Tactile Systems Technology | 0 | 3 | 3 | 1 | 2.71 |
Tactile Systems Technology has a consensus price target of $37.40, suggesting a potential upside of 43.30%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Tactile Systems Technology is more favorable than Sysmex.
Volatility & Risk
Sysmex has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Profitability
This table compares Sysmex and Tactile Systems Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sysmex | 8.86% | 9.27% | 6.63% |
| Tactile Systems Technology | 5.79% | 9.26% | 7.03% |
Summary
Tactile Systems Technology beats Sysmex on 10 of the 15 factors compared between the two stocks.
About Sysmex
Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.
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.