Sight Sciences (NASDAQ:SGHT – Get Free Report) and Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Volatility & Risk
Sight Sciences has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Insider and Institutional Ownership
55.5% of Sight Sciences shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 28.9% of Sight Sciences shares are owned by insiders. Comparatively, 1.0% of Tactile Systems Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sight Sciences | 1 | 5 | 1 | 0 | 2.00 |
| Tactile Systems Technology | 0 | 0 | 1 | 0 | 3.00 |
Sight Sciences presently has a consensus target price of $4.70, indicating a potential downside of 26.10%. Tactile Systems Technology has a consensus target price of $30.00, indicating a potential upside of 169.54%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Tactile Systems Technology is more favorable than Sight Sciences.
Profitability
This table compares Sight Sciences and Tactile Systems Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sight Sciences | -67.18% | -44.45% | -32.01% |
| Tactile Systems Technology | 10.19% | 15.88% | 10.33% |
Valuation and Earnings
This table compares Sight Sciences and Tactile Systems Technology’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sight Sciences | $81.06 million | 3.90 | -$55.55 million | ($1.12) | -5.68 |
| Tactile Systems Technology | $274.42 million | 0.96 | $28.51 million | $1.20 | 9.28 |
Tactile Systems Technology has higher revenue and earnings than Sight Sciences. Sight Sciences 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 Sight Sciences on 10 of the 13 factors compared between the two stocks.
About Sight Sciences
Sight Sciences, Inc., an ophthalmic medical device company, engages in the development and commercialization of surgical and nonsurgical technologies for the treatment of eye diseases. It operates through two segments, Surgical Glaucoma and Dry Eye. The company's products include OMNI Surgical System, an implant-free glaucoma surgery technology indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and SION Surgical Instrument, a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. It also offers TearCare System, a wearable eyelid technology for adult patients with evaporative dry eye disease due to meibomian gland dysfunction, as well as related components. It offers its products through sales representatives and distributors to hospitals, medical centers, and eyecare professionals in the United States. Sight Sciences, Inc. was incorporated in 2010 and is headquartered in Menlo Park, California.
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.
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