Waters (NYSE:WAT) and Tenon Medical (NASDAQ:TNON) Financial Analysis

Waters (NYSE:WAT) and Tenon Medical (NASDAQ:TNON) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Waters and Tenon Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waters	0	9	9	1	2.58
Tenon Medical	1	0	2	0	2.33

Waters currently has a consensus target price of $395.00, suggesting a potential upside of 0.68%. Tenon Medical has a consensus target price of $3.00, suggesting a potential upside of 214.30%. Given Tenon Medical’s higher probable upside, analysts plainly believe Tenon Medical is more favorable than Waters.

Insider and Institutional Ownership

94.0% of Waters shares are held by institutional investors. Comparatively, 22.7% of Tenon Medical shares are held by institutional investors. 0.6% of Waters shares are held by insiders. Comparatively, 0.3% of Tenon Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Waters and Tenon Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waters	$2.96 billion	7.90	$637.83 million	$10.88	36.06
Tenon Medical	$3.28 million	3.23	-$13.67 million	($1.77)	-0.54

Waters has higher revenue and earnings than Tenon Medical. Tenon Medical is trading at a lower price-to-earnings ratio than Waters, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Waters and Tenon Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waters	20.89%	36.59%	16.18%
Tenon Medical	-396.26%	-409.04%	-114.60%

Risk & Volatility

Waters has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Summary

Waters beats Tenon Medical on 13 of the 15 factors compared between the two stocks.

About Waters

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments: Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Further, the company provides thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.