Tenon Medical (NASDAQ:TNON) versus Modular Medical (NASDAQ:MODD) Critical Review

Modular Medical (NASDAQ:MODDGet Free Report) and Tenon Medical (NASDAQ:TNONGet Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Modular Medical and Tenon Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Modular Medical N/A -159.51% -137.42%
Tenon Medical -1,215.59% -357.74% -185.62%

Valuation & Earnings

This table compares Modular Medical and Tenon Medical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Modular Medical N/A N/A -$13.88 million ($1.18) -0.98
Tenon Medical $690,000.00 5.90 -$18.92 million ($1.74) -0.10

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

Insider and Institutional Ownership

29.4% of Modular Medical shares are owned by institutional investors. Comparatively, 21.7% of Tenon Medical shares are owned by institutional investors. 59.2% of Modular Medical shares are owned by company insiders. Comparatively, 8.1% of Tenon Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Modular Medical and Tenon Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modular Medical 0 0 1 0 3.00
Tenon Medical 0 0 1 0 3.00

Modular Medical currently has a consensus target price of $4.25, suggesting a potential upside of 266.38%. Tenon Medical has a consensus target price of $6.00, suggesting a potential upside of 3,233.33%. Given Tenon Medical’s higher probable upside, analysts clearly believe Tenon Medical is more favorable than Modular Medical.

Volatility and Risk

Modular Medical has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Summary

Modular Medical beats Tenon Medical on 7 of the 10 factors compared between the two stocks.

About Modular Medical

(Get Free Report)

Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.

About Tenon Medical

(Get Free Report)

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as stabilizes and transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

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