Tactile Systems Technology (NASDAQ:TCMD) & Modular Medical (NASDAQ:MODD) Head to Head Comparison

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

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%

Analyst Ratings

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

	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, suggesting a potential upside of 36.47%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tactile Systems Technology is more favorable than Modular Medical.

Volatility and Risk

Tactile Systems Technology has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$292.98 million	1.07	$28.51 million	$0.70	18.84
Modular Medical	N/A	N/A	-$17.47 million	($0.53)	-1.66

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.

Insider & Institutional 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 insiders. Comparatively, 20.5% of Modular Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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.