Reviewing Tactile Systems Technology (NASDAQ:TCMD) and Fractyl Health (NASDAQ:GUTS)

Fractyl Health (NASDAQ:GUTS) and Tactile Systems Technology (NASDAQ:TCMD) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fractyl Health and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fractyl Health	0	0	3	0	3.00
Tactile Systems Technology	0	2	0	1	2.67

Fractyl Health presently has a consensus price target of $22.00, suggesting a potential upside of 1,098.91%. Tactile Systems Technology has a consensus price target of $23.00, suggesting a potential upside of 32.75%. Given Fractyl Health’s stronger consensus rating and higher possible upside, research analysts plainly believe Fractyl Health is more favorable than Tactile Systems Technology.

Institutional and Insider Ownership

83.4% of Tactile Systems Technology shares are held by institutional investors. 1.4% of Tactile Systems Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fractyl Health	-64,849.48%	N/A	-57.21%
Tactile Systems Technology	5.42%	9.24%	6.56%

Earnings and Valuation

This table compares Fractyl Health and Tactile Systems Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fractyl Health	$120,000.00	735.53	-$77.09 million	($12.19)	-0.15
Tactile Systems Technology	$274.42 million	1.52	$28.51 million	$0.65	26.66

Tactile Systems Technology has higher revenue and earnings than Fractyl Health. Fractyl Health 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 Fractyl Health on 10 of the 14 factors compared between the two stocks.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.

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.