Head-To-Head Comparison: Tactile Systems Technology (NASDAQ:TCMD) versus Modular Medical (NASDAQ:MODD)

Tactile Systems Technology (NASDAQ:TCMD) and Modular Medical (NASDAQ:MODD) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 27.5% of Modular Medical shares are held by institutional investors. 1.0% of Tactile Systems Technology shares are held by company insiders. Comparatively, 20.5% of Modular Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Tactile Systems Technology has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tactile Systems Technology and Modular Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	3	0	0	2.00
Modular Medical	0	0	0	0	0.00

Tactile Systems Technology currently has a consensus price target of $18.00, indicating a potential upside of 38.46%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tactile Systems Technology is more favorable than Modular Medical.

Valuation and Earnings

This table compares Tactile Systems Technology and Modular Medical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$292.98 million	1.05	$28.51 million	$0.70	18.57
Modular Medical	N/A	N/A	-$17.47 million	($0.53)	-2.08

Tactile Systems Technology has higher revenue and earnings than Modular Medical. Modular 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.

Profitability

This table compares Tactile Systems Technology and Modular Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	5.79%	9.37%	6.75%
Modular Medical	N/A	-197.97%	-162.31%

Summary

Tactile Systems Technology beats Modular Medical on 11 of the 12 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 Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, California.