Penumbra (NYSE:PEN) and Tandem Diabetes Care (NASDAQ:TNDM) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
This table compares Penumbra and Tandem Diabetes Care’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tandem Diabetes Care||-92.85%||N/A||-51.68%|
Volatility and Risk
Penumbra has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Institutional and Insider Ownership
73.8% of Penumbra shares are owned by institutional investors. Comparatively, 62.7% of Tandem Diabetes Care shares are owned by institutional investors. 10.7% of Penumbra shares are owned by insiders. Comparatively, 9.3% of Tandem Diabetes Care shares are owned 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.
This is a breakdown of recent ratings and price targets for Penumbra and Tandem Diabetes Care, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tandem Diabetes Care||0||3||9||0||2.75|
Penumbra presently has a consensus price target of $164.80, suggesting a potential upside of 17.01%. Tandem Diabetes Care has a consensus price target of $44.04, suggesting a potential upside of 14.13%. Given Penumbra’s higher probable upside, equities research analysts plainly believe Penumbra is more favorable than Tandem Diabetes Care.
Earnings & Valuation
This table compares Penumbra and Tandem Diabetes Care’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Penumbra||$333.76 million||14.51||$4.65 million||($0.01)||-14,084.00|
|Tandem Diabetes Care||$107.60 million||19.08||-$73.03 million||($12.87)||-3.00|
Penumbra has higher revenue and earnings than Tandem Diabetes Care. Penumbra is trading at a lower price-to-earnings ratio than Tandem Diabetes Care, indicating that it is currently the more affordable of the two stocks.
Penumbra beats Tandem Diabetes Care on 9 of the 14 factors compared between the two stocks.
Penumbra Company Profile
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The company offers neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, DDC, and PX SLIM brands; aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the ACE and the 3D Revascularization Device brands. It also offers neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400 and Penumbra SMART Coil brands. In addition, the company provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; and detachable embolic coil systems for peripheral embolization under the RUBY Coil brand, as well as microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand. Further, it offers detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand; and aspiration-based thrombectomy systems for peripheral applications under the Indigo System brand, as well as a complementary device for use with RUBY Coil and POD for vessel occlusion under the POD Packing Coil brand. The company sells its products through direct sales organizations and distributors to hospitals in neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.
Tandem Diabetes Care Company Profile
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The company's flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:flex insulin delivery system that includes t:flex pump, its 480-unit disposable insulin cartridge, and an infusion set; t:slim X2 with G5 integration; and Tandem Device Updater, a PC and Mac-compatible tool that allows users to update their pump's software. In addition, the company offers t:connect diabetes management application, a cloud-based data management application, which provides a visual way to display therapy management data from the pump and supported blood glucose meters for users, their caregivers, and their healthcare providers; t:lock cartridge and infusion set products; and various pump accessories. Its products in development include automated insulin delivery systems; t:slim X2 with Basal IQ; t:slim X2 with control IQ; t:sport insulin delivery system; and connected (mobile) health mobile application. 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 founded in 2006 and is headquartered in San Diego, California.
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