Analyzing Tactile Systems Technology (TCMD) & The Competition

Tactile Systems Technology (NASDAQ:TCMD) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its peers? We will compare Tactile Systems Technology to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Volatility & Risk

Tactile Systems Technology has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Tactile Systems Technology’s peers have a beta of 2.56, suggesting that their average stock price is 156% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tactile Systems Technology and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tactile Systems Technology	$356.42 million	$19.09 million	25.27
Tactile Systems Technology Competitors	$1.88 billion	$138.79 million	10.35

Tactile Systems Technology’s peers have higher revenue and earnings than Tactile Systems Technology. Tactile Systems Technology is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Tactile Systems Technology and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	4	0	2.67
Tactile Systems Technology Competitors	4279	10550	18327	829	2.46

Tactile Systems Technology presently has a consensus target price of $36.80, indicating a potential upside of 41.38%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.28%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tactile Systems Technology is more favorable than its peers.

Profitability

This table compares Tactile Systems Technology and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	6.68%	10.73%	8.53%
Tactile Systems Technology Competitors	-305.24%	-170.58%	-22.05%

Insider & Institutional Ownership

83.4% of Tactile Systems Technology shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 2.1% of Tactile Systems Technology shares are owned by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tactile Systems Technology beats its peers on 8 of the 13 factors compared.

Tactile Systems Technology Company Profile

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.