Tactile Systems Technology (NASDAQ:TCMD) versus Integer (NYSE:ITGR) Financial Review

Tactile Systems Technology (NASDAQ:TCMD) and Integer (NYSE:ITGR) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Tactile Systems Technology has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Integer has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	5.91%	9.70%	7.53%
Integer	7.64%	12.83%	6.51%

Institutional & Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 99.3% of Integer shares are held by institutional investors. 2.1% of Tactile Systems Technology shares are held by company insiders. Comparatively, 1.1% of Integer shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tactile Systems Technology and Integer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	4	1	2.86
Integer	1	6	4	0	2.27

Tactile Systems Technology presently has a consensus target price of $38.60, suggesting a potential upside of 52.87%. Integer has a consensus target price of $98.71, suggesting a potential upside of 7.54%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tactile Systems Technology is more favorable than Integer.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tactile Systems Technology	$329.52 million	1.73	$19.09 million	$0.88	28.69
Integer	$1.85 billion	1.68	$102.81 million	$4.01	22.89

Integer has higher revenue and earnings than Tactile Systems Technology. Integer 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 Integer on 8 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 Integer

Integer Holdings Corporation operates as a medical device outsource manufacturer in the United States, Puerto Rico, Costa Rica, and internationally. It operates through two segments, Medical and Non-Medical. The company offers products for interventional cardiology, structural heart, heart failure, peripheral vascular, neurovascular, interventional oncology, electrophysiology, vascular access, infusion therapy, hemodialysis, non-vascular, urology, and gastroenterology procedures. It also provides cardiac rhythm management products, including implantable pacemakers, implantable cardioverter defibrillators, insertable cardiac monitors, implantable cardiac pacing and defibrillation leads, and heart failure therapies; neuromodulation products, such as implantable spinal cord stimulators; and non-rechargeable batteries, feedthroughs, device enclosures, machined components, and lead components and sub-assemblies. In addition, the company offers rechargeable batteries and chargers; and arthroscopic, laparoscopic, and general surgery devices and components, such as harmonic scalpels, shaver blades, burr shavers, radio frequency probes, biopsy probes, trocars, electrocautery components, wound dressings, GERD treatment components, and phacoemulsification needles. Further, it provides orthopedic products that include instruments used in hip, knee, and spine surgeries, as well as reamers and chisels. Additionally, the company offers customized battery power and power management systems, and battery solutions for the energy, military, and environmental markets. Furthermore, the company provides medical technologies. It serves multi-national original equipment manufacturers and their affiliated subsidiaries in the cardiac rhythm management, neuromodulation, orthopedics, vascular, and advanced surgical and portable medical markets. Integer Holdings Corporation was founded in 1970 and is headquartered in Plano, Texas.