Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) and Envoy Medical (NASDAQ:COCH – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Profitability
This table compares Tactile Systems Technology and Envoy Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tactile Systems Technology | 5.83% | 8.84% | 6.54% |
| Envoy Medical | -11,950.00% | N/A | -248.54% |
Insider & Institutional Ownership
83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 8.6% of Envoy Medical shares are held by institutional investors. 2.5% of Tactile Systems Technology shares are held by company insiders. Comparatively, 5.7% of Envoy Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tactile Systems Technology | $292.98 million | 2.32 | $16.96 million | $0.77 | 39.56 |
| Envoy Medical | $220,000.00 | 89.94 | -$20.80 million | ($1.41) | -0.49 |
Tactile Systems Technology has higher revenue and earnings than Envoy Medical. Envoy Medical is trading at a lower price-to-earnings ratio than Tactile Systems Technology, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Tactile Systems Technology and Envoy Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tactile Systems Technology | 0 | 3 | 2 | 1 | 2.67 |
| Envoy Medical | 1 | 0 | 1 | 0 | 2.00 |
Tactile Systems Technology currently has a consensus target price of $28.75, indicating a potential downside of 5.61%. Envoy Medical has a consensus target price of $9.50, indicating a potential upside of 1,282.22%. Given Envoy Medical’s higher probable upside, analysts plainly believe Envoy Medical is more favorable than Tactile Systems Technology.
Volatility & Risk
Tactile Systems Technology has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Envoy Medical has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.
Summary
Tactile Systems Technology beats Envoy Medical on 11 of the 15 factors compared between the two stocks.
About Tactile Systems Technology
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.
About Envoy Medical
Envoy Medical, Inc., a hearing health company, provides medical technologies for the hearing loss spectrum. Its products include personal sound amplification devices; hearing aids; Esteem fully implanted active middle ear implants; auditory osseointegrated implants; and Acclaim cochlear implants. The company was formerly known as Envoy Medical Corporation and changed its name to Envoy Medical, Inc. in September 2023. Envoy Medical, Inc. was founded in 1995 and is headquartered in White Bear Lake, Minnesota.
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