Tandem Diabetes Care (NASDAQ:TNDM) versus Hill-Rom (NASDAQ:HRC) Head-To-Head Review
Tandem Diabetes Care (NASDAQ:TNDM) and Hill-Rom (NYSE:HRC) are both mid-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
This table compares Tandem Diabetes Care and Hill-Rom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tandem Diabetes Care||-7.19%||-9.44%||-5.50%|
This is a summary of recent ratings for Tandem Diabetes Care and Hill-Rom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tandem Diabetes Care||0||2||11||0||2.85|
Tandem Diabetes Care currently has a consensus price target of $75.92, indicating a potential upside of 9.87%. Hill-Rom has a consensus price target of $127.50, indicating a potential upside of 16.29%. Given Hill-Rom’s higher possible upside, analysts clearly believe Hill-Rom is more favorable than Tandem Diabetes Care.
Insider and Institutional Ownership
83.0% of Tandem Diabetes Care shares are owned by institutional investors. Comparatively, 83.0% of Hill-Rom shares are owned by institutional investors. 6.9% of Tandem Diabetes Care shares are owned by company insiders. Comparatively, 0.7% of Hill-Rom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Tandem Diabetes Care and Hill-Rom’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tandem Diabetes Care||$183.87 million||22.21||-$122.61 million||($2.55)||-27.10|
|Hill-Rom||$2.91 billion||2.53||$152.20 million||$5.08||21.58|
Hill-Rom has higher revenue and earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Hill-Rom, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Tandem Diabetes Care has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Hill-Rom has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Hill-Rom beats Tandem Diabetes Care on 10 of the 14 factors compared between the two stocks.
About Tandem Diabetes Care
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:slim X2 Insulin Delivery System with Basal-IQ Technology; t:slim X2 with G5 Integration; and Tandem Device Updater 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; and various pump accessories. Its products in development include t:slim X2 with control IQ technology; t:sport insulin delivery system; and connected (mobile) health offerings. 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.
Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It operates in three segments: Patient Support Systems, Front Line Care, and Surgical Solutions. The company offers medical surgical beds, intensive care unit beds, and bariatric patient beds, lifts and other patient mobility devices, non-invasive therapeutic products and surfaces, and information technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment. It also provides patient monitoring and diagnostics products, such as blood pressure, physical assessment, vital signs monitoring, diagnostic cardiopulmonary, diabetic retinopathy screening, and thermometry products; and respiratory health products comprising Vest System, VitalCough System, MetaNeb System, and Monarch systems to assist patients in the mobilization of retained blockages. In addition, the company offers surgical solutions that include surgical tables, lights, and pendants; positioning devices for use in shoulder, hip, spinal, and lithotomy surgeries, as well as platform-neutral positioning accessories for operating room tables; and operating room surgical safety and accessory products, which comprise scalpels and blades, light handle systems, skin markers, and other disposable products. Further, it is involved in the sales and rental of products to acute and extended care facilities through direct sales force and distributors; sales and rental of products directly to patients in the home; and sales to primary care facilities through distributors. Additionally, the company offers continuum of clinical care, including acute care and primary care, as well as clinical research organizations. Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.
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