Financial Analysis: Tactile Systems Technology (NASDAQ:TCMD) vs. Vicarious Surgical (NYSE:RBOT)

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

Risk and Volatility

Tactile Systems Technology has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Vicarious Surgical has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 47.3% of Vicarious Surgical shares are held by institutional investors. 2.5% of Tactile Systems Technology shares are held by company insiders. Comparatively, 10.0% of Vicarious Surgical 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tactile Systems Technology and Vicarious Surgical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	3	2	1	2.67
Vicarious Surgical	1	2	0	0	1.67

Tactile Systems Technology currently has a consensus price target of $28.75, suggesting a potential downside of 0.79%. Vicarious Surgical has a consensus price target of $7.00, suggesting a potential upside of 177.23%. Given Vicarious Surgical’s higher probable upside, analysts clearly believe Vicarious Surgical is more favorable than Tactile Systems Technology.

Profitability

This table compares Tactile Systems Technology and Vicarious Surgical’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%
Vicarious Surgical	N/A	-184.13%	-112.50%

Earnings & Valuation

This table compares Tactile Systems Technology and Vicarious Surgical”s top-line 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	2.21	$16.96 million	$0.77	37.64
Vicarious Surgical	N/A	N/A	-$63.22 million	($9.05)	-0.28

Tactile Systems Technology has higher revenue and earnings than Vicarious Surgical. Vicarious Surgical 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.

Summary

Tactile Systems Technology beats Vicarious Surgical on 11 of the 14 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 Vicarious Surgical

Vicarious Surgical Inc. operates as a robotics technology company in the United States. The company focuses on developing and commercializing Vicarious System, a single-incision surgical robot that virtually transports surgeons inside the patient to perform minimally invasive surgery. Vicarious Surgical Inc. was incorporated in 2014 and is headquartered in Waltham, Massachusetts.