Reviewing Treace Medical Concepts (NASDAQ:TMCI) & Teleflex (NYSE:TFX)

Treace Medical Concepts (NASDAQ:TMCI) and Teleflex (NYSE:TFX) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Treace Medical Concepts and Teleflex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	0	6	0	0	2.00
Teleflex	0	3	6	0	2.67

Treace Medical Concepts currently has a consensus price target of $7.40, suggesting a potential downside of 4.88%. Teleflex has a consensus price target of $259.25, suggesting a potential upside of 28.39%. Given Teleflex’s stronger consensus rating and higher probable upside, analysts plainly believe Teleflex is more favorable than Treace Medical Concepts.

Institutional & Insider Ownership

84.1% of Treace Medical Concepts shares are held by institutional investors. Comparatively, 95.6% of Teleflex shares are held by institutional investors. 24.4% of Treace Medical Concepts shares are held by company insiders. Comparatively, 1.4% of Teleflex 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 Treace Medical Concepts and Teleflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-32.08%	-49.53%	-26.50%
Teleflex	7.85%	14.19%	8.53%

Volatility and Risk

Treace Medical Concepts has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Teleflex has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Treace Medical Concepts and Teleflex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$187.12 million	2.59	-$49.53 million	($1.02)	-7.63
Teleflex	$2.97 billion	3.15	$356.33 million	$5.03	40.14

Teleflex has higher revenue and earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Teleflex, indicating that it is currently the more affordable of the two stocks.

Summary

Teleflex beats Treace Medical Concepts on 13 of the 14 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.