TELA Bio (NASDAQ:TELA – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
94.3% of TELA Bio shares are held by institutional investors. 1.1% of TELA Bio shares are held by company insiders. Comparatively, 1.0% of iRhythm Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares TELA Bio and iRhythm Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELA Bio | $80.28 million | 0.60 | -$38.83 million | ($0.77) | -1.38 |
| iRhythm Technologies | $747.14 million | 4.75 | -$44.55 million | ($0.43) | -250.49 |
TELA Bio has higher earnings, but lower revenue than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for TELA Bio and iRhythm Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELA Bio | 1 | 1 | 4 | 0 | 2.50 |
| iRhythm Technologies | 1 | 1 | 12 | 2 | 2.94 |
TELA Bio presently has a consensus price target of $2.14, indicating a potential upside of 101.21%. iRhythm Technologies has a consensus price target of $178.79, indicating a potential upside of 65.99%. Given TELA Bio’s higher probable upside, equities analysts plainly believe TELA Bio is more favorable than iRhythm Technologies.
Profitability
This table compares TELA Bio and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TELA Bio | -51.53% | -1,320.81% | -59.39% |
| iRhythm Technologies | -1.69% | 10.11% | 1.53% |
Volatility and Risk
TELA Bio has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Summary
iRhythm Technologies beats TELA Bio on 10 of the 14 factors compared between the two stocks.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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