Alliqua BioMedical (NASDAQ: ALQA) and Tandem Diabetes Care (NASDAQ:TNDM) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Alliqua BioMedical and Tandem Diabetes Care’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliqua BioMedical -185.30% -107.24% -65.83%
Tandem Diabetes Care -110.70% -1,177.11% -87.18%

Institutional and Insider Ownership

21.7% of Alliqua BioMedical shares are held by institutional investors. Comparatively, 36.7% of Tandem Diabetes Care shares are held by institutional investors. 15.8% of Alliqua BioMedical shares are held by company insiders. Comparatively, 20.9% of Tandem Diabetes Care 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.

Risk and Volatility

Alliqua BioMedical has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Alliqua BioMedical and Tandem Diabetes Care, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliqua BioMedical 0 0 3 0 3.00
Tandem Diabetes Care 0 5 4 0 2.44

Alliqua BioMedical currently has a consensus target price of $1.58, suggesting a potential upside of 403.12%. Tandem Diabetes Care has a consensus target price of $5.08, suggesting a potential upside of 802.42%. Given Tandem Diabetes Care’s higher possible upside, analysts clearly believe Tandem Diabetes Care is more favorable than Alliqua BioMedical.

Earnings and Valuation

This table compares Alliqua BioMedical and Tandem Diabetes Care’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alliqua BioMedical $19.93 million 0.79 -$16.79 million ($1.23) -0.26
Tandem Diabetes Care $81.51 million 0.35 -$76.17 million ($2.64) -0.21

Alliqua BioMedical has higher revenue, but lower earnings than Tandem Diabetes Care. Alliqua BioMedical is trading at a lower price-to-earnings ratio than Tandem Diabetes Care, indicating that it is currently the more affordable of the two stocks.

Summary

Alliqua BioMedical beats Tandem Diabetes Care on 7 of the 13 factors compared between the two stocks.

About Alliqua BioMedical

Alliqua BioMedical, Inc. is a provider of advanced wound care solutions. The Company’s businesses include advanced wound care and contract manufacturing. The Company operates through its subsidiaries, such as AquaMed Technologies, Inc. and Choice Therapeutics, Inc. The Company is engaged in developing a suite of advanced wound care solutions that will enable surgeons, clinicians and wound care practitioners to address the challenges in chronic and acute wounds. The Company utilizes hydrogel technology through which hydrogels are manufactured by introducing a hydrophilic polymer into water to create a feed mix. The Company’s commercial wound care portfolio consists of over four product categories, such as Human Biologics; Antimicrobial Protection; Exudate Management and Contract Manufacturing. Human Biologics include BIOVANCE and Extracellular Matrix (ECM). Under Antimicrobial Protection, the Company offers TheraBond 3D Antimicrobial Barrier Systems and SilverSeal.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc. is a medical device company. The Company is engaged in designing, developing and commercializing products for people with insulin-dependent diabetes. The Company manufactures and sells three insulin pump products, which include t:slim Insulin Delivery System (t:slim), t:flex Insulin Delivery System (t:flex) and t:slim G4 Insulin Delivery System (t:slim G4). Its technology platform features Micro-Delivery Technology, a miniaturized pumping mechanism, which draws insulin from a flexible bag within the pump’s cartridge rather than relying on a syringe and plunger mechanism. It also features a software, which is a vivid color touch screen and a micro- universal serial bus (USB) connection that supports both a rechargeable battery and uploads to t:connect Diabetes Management Application (t:connect), its custom cloud-based data management application that provides display therapy management data from the pump and supported blood glucose meters.

Receive News & Ratings for Alliqua BioMedical Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliqua BioMedical Inc. and related companies with MarketBeat.com's FREE daily email newsletter.