Critical Analysis: T2 Biosystems (NASDAQ:TTOO) versus Anika Therapeutics (NASDAQ:ANIK)

T2 Biosystems (NASDAQ:TTOO) and Anika Therapeutics (NASDAQ:ANIK) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Risk & Volatility

T2 Biosystems has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Anika Therapeutics has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares T2 Biosystems and Anika Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T2 Biosystems	$7.19 million	2.28	-$50.08 million	N/A	N/A
Anika Therapeutics	$166.66 million	2.28	-$82.67 million	($5.65)	-4.53

T2 Biosystems has higher earnings, but lower revenue than Anika Therapeutics.

Profitability

This table compares T2 Biosystems and Anika Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T2 Biosystems	-696.19%	N/A	-129.79%
Anika Therapeutics	-49.60%	-2.10%	-1.71%

Insider and Institutional Ownership

23.2% of T2 Biosystems shares are held by institutional investors. Comparatively, 91.5% of Anika Therapeutics shares are held by institutional investors. 0.1% of T2 Biosystems shares are held by company insiders. Comparatively, 5.9% of Anika Therapeutics 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for T2 Biosystems and Anika Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T2 Biosystems	0	0	0	0	N/A
Anika Therapeutics	0	1	1	0	2.50

Anika Therapeutics has a consensus price target of $29.50, indicating a potential upside of 15.28%. Given Anika Therapeutics’ higher possible upside, analysts clearly believe Anika Therapeutics is more favorable than T2 Biosystems.

Summary

Anika Therapeutics beats T2 Biosystems on 9 of the 11 factors compared between the two stocks.

About T2 Biosystems

T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument that runs various diagnostic tests from patient samples; T2Candida panel, a direct-from-blood test that identifies blood stream infections that causes sepsis and candidemia; T2Bacteria panel, a direct-from-blood test, which detects bacterial pathogens associated with sepsis; T2Resistance panel, a direct-from-blood test that identifies carbapenem resistance genes; and T2SARS-CoV-2 panel to detect SARS-CoV-2 virus. In addition, it is developing T2Biothreat panel for detection of biothreat pathogens; comprehensive sepsis panel to detect bloodstream infections caused by bacterial and Candida species, and antibiotic resistant markers; T2Cauris panel to provide direct detection of the emerging superbug Candida auris in patient skin, patient blood, and hospital environmental samples; and T2Lyme panel, a direct-from-blood test panel designed to run on the T2Dx Instrument to identify the bacteria that cause Lyme disease. The company was incorporated in 2006 and is headquartered in Lexington, Massachusetts.

About Anika Therapeutics

Anika Therapeutics, Inc., a joint preservation company, creates and delivers advancements in early intervention orthopedic care in the areas of osteoarthritis (OA) pain management, regenerative solutions, sports medicine, and arthrosurface joint solutions in the United States, Europe, and internationally. The company develops, manufactures, and commercializes products based on hyaluronic acid (HA) technology platform. Its OA pain management products includes Monovisc and Orthovisc, an injectable HA-based viscosupplement for the pain relief from osteoarthritis conditions; and Cingal, a single-injection OA pain management product to provide both short- and long-term pain relief. The company's joint preservation and restoration product family comprises and orthopedic regenerative solutions, including Hyalofast and Tactoset; sports medicine solutions used to repair and reconstruct damaged ligaments and tendons; and preserving joint solutions, including partial joint replacement, joint resurfacing, and invasive and bone sparing implants, which are designed to treat upper and lower extremity orthopedic conditions. In addition, it offers non-orthopedic products comprising HA-based products for non-orthopedic applications including Hyvisc, a molecular weight injectable HA veterinary product; Hyalobarrier, an anti-adhesion barrier indicated for use after abdominal-pelvic surgeries; and Hyalomatrix used for the treatment of burns and ulcers, as well as products used for the treatment of ears, nose and throat disorders, and ophthalmic products. The company was founded in 1983 and is headquartered in Bedford, Massachusetts.