Adagio Medical (NASDAQ:ADGM – Get Free Report) and Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
48.1% of Adagio Medical shares are owned by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are owned by institutional investors. 5.2% of Adagio Medical shares are owned by insiders. Comparatively, 27.7% of Treace Medical Concepts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Adagio Medical has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adagio Medical | 1 | 0 | 1 | 0 | 2.00 |
| Treace Medical Concepts | 2 | 4 | 0 | 0 | 1.67 |
Adagio Medical currently has a consensus price target of $4.00, suggesting a potential upside of 339.56%. Treace Medical Concepts has a consensus price target of $6.57, suggesting a potential upside of 148.86%. Given Adagio Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Adagio Medical is more favorable than Treace Medical Concepts.
Profitability
This table compares Adagio Medical and Treace Medical Concepts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adagio Medical | N/A | -791.01% | -199.58% |
| Treace Medical Concepts | -22.89% | -49.49% | -24.27% |
Earnings and Valuation
This table compares Adagio 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 | |
| Adagio Medical | $600,000.00 | 23.33 | -$75.04 million | ($1.52) | -0.60 |
| Treace Medical Concepts | $209.36 million | 0.80 | -$55.74 million | ($0.80) | -3.30 |
Treace Medical Concepts has higher revenue and earnings than Adagio Medical. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Adagio Medical, indicating that it is currently the more affordable of the two stocks.
Summary
Treace Medical Concepts beats Adagio Medical on 8 of the 14 factors compared between the two stocks.
About Adagio Medical
Adagio Medical Holdings, Inc., a developmental stage medical device company, focuses on the development and commercialization of ablation technologies for the treatment of cardiac arrhythmias. It offers treatment for cardiac arrhythmias, including atrial fibrillation, atrial flutter, and ventricular tachycardia. The company’s product portfolio includes iCLAS atrial ultra-low temperature cryoablation (ULTC) catheter and accessories; vCLAS ventricular ULTC catheter; and Cryopulse atrial pulsed-field cryoablation catheter and accessories. The company is based in Laguna Hills, California.
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.
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