Head-To-Head Analysis: Sensus Healthcare (NASDAQ:SRTS) versus Tactile Systems Technology (NASDAQ:TCMD)

Tactile Systems Technology (NASDAQ:TCMD) and Sensus Healthcare (NASDAQ:SRTS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tactile Systems Technology	5.42%	9.24%	6.56%
Sensus Healthcare	22.54%	17.99%	16.26%

Earnings & Valuation

This table compares Tactile Systems Technology and Sensus Healthcare”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	$285.05 million	1.45	$28.51 million	$0.65	26.54
Sensus Healthcare	$41.31 million	2.86	$490,000.00	$0.57	12.65

Tactile Systems Technology has higher revenue and earnings than Sensus Healthcare. Sensus Healthcare 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.

Analyst Ratings

This is a summary of current ratings and target prices for Tactile Systems Technology and Sensus Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tactile Systems Technology	0	2	0	1	2.67
Sensus Healthcare	0	0	2	1	3.33

Tactile Systems Technology currently has a consensus price target of $23.00, indicating a potential upside of 33.33%. Sensus Healthcare has a consensus price target of $12.50, indicating a potential upside of 73.37%. Given Sensus Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Sensus Healthcare is more favorable than Tactile Systems Technology.

Insider & Institutional Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. Comparatively, 25.3% of Sensus Healthcare shares are held by institutional investors. 1.0% of Tactile Systems Technology shares are held by insiders. Comparatively, 9.4% of Sensus Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Tactile Systems Technology has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Sensus Healthcare has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

Sensus Healthcare beats Tactile Systems Technology 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 Sensus Healthcare

Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.