Tandem Diabetes Care (NASDAQ:TNDM – Get Free Report) and Orchestra BioMed (NASDAQ:OBIO – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Institutional and Insider Ownership
53.6% of Orchestra BioMed shares are held by institutional investors. 2.2% of Tandem Diabetes Care shares are held by company insiders. Comparatively, 6.7% of Orchestra BioMed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
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, Orchestra BioMed has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Tandem Diabetes Care | -14.84% | -44.19% | -11.99% |
Orchestra BioMed | -2,179.33% | -107.04% | -70.88% |
Earnings and Valuation
This table compares Tandem Diabetes Care and Orchestra BioMed”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tandem Diabetes Care | $747.72 million | 2.93 | -$222.61 million | ($1.93) | -17.29 |
Orchestra BioMed | $2.76 million | 76.85 | -$49.12 million | ($1.61) | -3.47 |
Orchestra BioMed has lower revenue, but higher earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Orchestra BioMed, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Tandem Diabetes Care and Orchestra BioMed, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tandem Diabetes Care | 0 | 3 | 15 | 0 | 2.83 |
Orchestra BioMed | 0 | 0 | 4 | 0 | 3.00 |
Tandem Diabetes Care currently has a consensus price target of $54.25, suggesting a potential upside of 62.57%. Orchestra BioMed has a consensus price target of $15.75, suggesting a potential upside of 182.26%. Given Orchestra BioMed’s stronger consensus rating and higher possible upside, analysts plainly believe Orchestra BioMed is more favorable than Tandem Diabetes Care.
Summary
Orchestra BioMed beats Tandem Diabetes Care on 8 of the 14 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 Orchestra BioMed
Orchestra BioMed Holdings, Inc. operates as a biomedical innovation company. The company’s flagship product candidates include BackBeat Cardiac Neuromodulation Therapy (CNT) for the treatment of hypertension (HTN); and Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of atherosclerotic artery disease. Its products also comprise FreeHold devices and minimally invasive surgery devices. The company has a collaboration agreement with Medtronic, Inc. for the development and commercialization of BackBeat CNT for the treatment of HTN in patients indicated for a cardiac pacemaker; and a strategic collaboration with Terumo Medical Corporation for the development and commercialization of Virtue SAB for the treatment of coronary and peripheral artery disease. Orchestra BioMed Holdings, Inc. is based in New Hope, Pennsylvania.
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