Head to Head Contrast: CONMED (NYSE:CNMD) vs. Tactile Systems Technology (NASDAQ:TCMD)
by Michael Walen · The Markets DailyCONMED (NYSE:CNMD – Get Free Report) and Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Valuation and Earnings
This table compares CONMED and Tactile Systems Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CONMED | $1.37 billion | 1.02 | $47.06 million | $2.42 | 19.52 |
| Tactile Systems Technology | $329.52 million | 1.70 | $19.09 million | $1.08 | 22.94 |
CONMED has higher revenue and earnings than Tactile Systems Technology. CONMED 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.
Profitability
This table compares CONMED and Tactile Systems Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CONMED | 5.36% | 13.93% | 6.26% |
| Tactile Systems Technology | 6.68% | 10.82% | 8.65% |
Institutional and Insider Ownership
83.4% of Tactile Systems Technology shares are held by institutional investors. 0.3% of CONMED shares are held by company insiders. Comparatively, 2.1% of Tactile Systems Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
CONMED has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CONMED and Tactile Systems Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CONMED | 1 | 7 | 0 | 0 | 1.88 |
| Tactile Systems Technology | 0 | 2 | 4 | 0 | 2.67 |
CONMED currently has a consensus price target of $44.00, suggesting a potential downside of 6.85%. Tactile Systems Technology has a consensus price target of $36.80, suggesting a potential upside of 48.51%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Tactile Systems Technology is more favorable than CONMED.
Summary
Tactile Systems Technology beats CONMED on 10 of the 14 factors compared between the two stocks.
About CONMED
CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.
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.