Reviewing Treace Medical Concepts (NASDAQ:TMCI) and Abbott Laboratories (NYSE:ABT)

Treace Medical Concepts (NASDAQ:TMCI) and Abbott Laboratories (NYSE:ABT) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 75.2% of Abbott Laboratories shares are held by institutional investors. 23.4% of Treace Medical Concepts shares are held by insiders. Comparatively, 0.5% of Abbott Laboratories shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Treace Medical Concepts and Abbott Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-28.99%	-71.37%	-30.49%
Abbott Laboratories	11.65%	17.69%	9.44%

Volatility and Risk

Treace Medical Concepts has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Abbott Laboratories has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Earnings and Valuation

This table compares Treace Medical Concepts and Abbott Laboratories”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	1.47	-$59.00 million	($0.93)	-5.17
Abbott Laboratories	$46.59 billion	4.02	$6.52 billion	$3.09	35.05

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Treace Medical Concepts and Abbott Laboratories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
Abbott Laboratories	0	4	20	3	2.96

Treace Medical Concepts currently has a consensus target price of $5.17, suggesting a potential upside of 7.48%. Abbott Laboratories has a consensus target price of $119.50, suggesting a potential upside of 10.35%. Given Abbott Laboratories’ stronger consensus rating and higher possible upside, analysts clearly believe Abbott Laboratories is more favorable than Treace Medical Concepts.

Summary

Abbott Laboratories beats Treace Medical Concepts on 12 of the 15 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.