Critical Comparison: GBS (NYSE:GBS) & Tandem Diabetes Care (NASDAQ:TNDM)

GBS (NYSE:GBS) and Tandem Diabetes Care (NASDAQ:TNDM) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Earnings and Valuation

This table compares GBS and Tandem Diabetes Care”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	71.74	-$8.31 million	($0.56)	-3.79
Tandem Diabetes Care	$747.72 million	3.17	-$222.61 million	($1.93)	-18.70

GBS has higher earnings, but lower revenue than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than GBS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GBS and Tandem Diabetes Care’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
Tandem Diabetes Care	-14.84%	-44.19%	-11.99%

Insider and Institutional Ownership

2.8% of GBS shares are held by institutional investors. 0.3% of GBS shares are held by insiders. Comparatively, 2.2% of Tandem Diabetes Care shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for GBS and Tandem Diabetes Care, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	0.00
Tandem Diabetes Care	0	3	15	0	2.83

Tandem Diabetes Care has a consensus target price of $53.81, indicating a potential upside of 49.07%. Given Tandem Diabetes Care’s stronger consensus rating and higher possible upside, analysts clearly believe Tandem Diabetes Care is more favorable than GBS.

Risk & Volatility

GBS has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

Tandem Diabetes Care beats GBS on 7 of the 13 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.