Tandem Diabetes Care (NASDAQ: TNDM) and Soleno Therapeutics (NASDAQ:SLNO) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares Tandem Diabetes Care and Soleno Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tandem Diabetes Care $84.25 million 0.28 -$83.44 million ($19.71) -0.12
Soleno Therapeutics $1.45 million 22.29 -$12.06 million ($2.05) -0.82

Soleno Therapeutics has lower revenue, but higher earnings than Tandem Diabetes Care. Soleno Therapeutics 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.

Risk & Volatility

Tandem Diabetes Care has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Soleno Therapeutics has a beta of 5.53, suggesting that its stock price is 453% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Tandem Diabetes Care -79.45% N/A -74.29%
Soleno Therapeutics -1,389.76% -54.11% -46.95%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tandem Diabetes Care and Soleno Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tandem Diabetes Care 0 4 2 0 2.33
Soleno Therapeutics 0 0 1 0 3.00

Tandem Diabetes Care presently has a consensus target price of $13.00, suggesting a potential upside of 453.19%. Soleno Therapeutics has a consensus target price of $8.00, suggesting a potential upside of 376.19%. Given Tandem Diabetes Care’s higher probable upside, equities research analysts clearly believe Tandem Diabetes Care is more favorable than Soleno Therapeutics.

Summary

Soleno Therapeutics beats Tandem Diabetes Care on 6 of the 11 factors compared between the two stocks.

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc. is a medical device company. The Company is engaged in designing, developing and commercializing products for people with insulin-dependent diabetes. The Company manufactures and sells three insulin pump products, which include t:slim Insulin Delivery System (t:slim), t:flex Insulin Delivery System (t:flex) and t:slim G4 Insulin Delivery System (t:slim G4). Its technology platform features Micro-Delivery Technology, a miniaturized pumping mechanism, which draws insulin from a flexible bag within the pump’s cartridge rather than relying on a syringe and plunger mechanism. It also features a software, which is a vivid color touch screen and a micro- universal serial bus (USB) connection that supports both a rechargeable battery and uploads to t:connect Diabetes Management Application (t:connect), its custom cloud-based data management application that provides display therapy management data from the pump and supported blood glucose meters.

Soleno Therapeutics Company Profile

Soleno Therapeutics, Inc., formerly Capnia, Inc., is a healthcare company that develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. The Company offers products, such as CoSense end-tidal carbon monoxide (ETCO) Monitor, NeoPIP Infant Resuscitator and Accessories, and Serenz Nasal Relief. The Company has developed the CoSense End-Tidal Carbon Monoxide Monitor that measures ETCO for the detection of dangerous hemolysis rates. The Infant Solutions product line, including the NeoPIP Infant Resuscitator Unit and accessories, is designed for controlled and accurate resuscitation of neonates and infants in the clinical environment. Serenz Nasal Relief is a hand-held nasal irrigator that uses carbon dioxide (CO2) gas to wash the nasal passages.

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