Tandem Diabetes Care (NASDAQ:TNDM – Get Free Report) and Modular Medical (NASDAQ:MODD – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Analyst Recommendations
This is a summary of recent ratings and target prices for Tandem Diabetes Care and Modular Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandem Diabetes Care | 0 | 3 | 15 | 0 | 2.83 |
| Modular Medical | 0 | 0 | 1 | 0 | 3.00 |
Tandem Diabetes Care presently has a consensus price target of $53.81, indicating a potential upside of 60.78%. Modular Medical has a consensus price target of $5.00, indicating a potential upside of 354.55%. Given Modular Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Modular Medical is more favorable than Tandem Diabetes Care.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandem Diabetes Care | $747.72 million | 2.94 | -$222.61 million | ($1.93) | -17.34 |
| Modular Medical | N/A | N/A | -$17.47 million | ($0.53) | -2.08 |
Modular Medical has lower revenue, but higher earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Modular Medical, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
27.5% of Modular Medical shares are held by institutional investors. 2.2% of Tandem Diabetes Care 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Tandem Diabetes Care and Modular Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandem Diabetes Care | -14.84% | -44.19% | -11.99% |
| Modular Medical | N/A | -246.01% | -191.95% |
Volatility & Risk
Tandem Diabetes Care has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Summary
Modular Medical beats Tandem Diabetes Care on 8 of the 13 factors compared between the two stocks.
About Tandem Diabetes Care
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.
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.
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