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

Earnings & Valuation

This table compares Shockwave Medical and Tandem Diabetes Care’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shockwave Medical N/A N/A N/A N/A N/A
Tandem Diabetes Care $183.87 million 25.30 -$122.61 million ($2.55) -30.87

Shockwave Medical has higher earnings, but lower revenue than Tandem Diabetes Care.

Profitability

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

Net Margins Return on Equity Return on Assets
Shockwave Medical N/A N/A N/A
Tandem Diabetes Care -7.19% -9.44% -5.50%

Insider & Institutional Ownership

61.1% of Shockwave Medical shares are owned by institutional investors. Comparatively, 83.0% of Tandem Diabetes Care shares are owned by institutional investors. 6.9% of Tandem Diabetes Care shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Shockwave Medical and Tandem Diabetes Care, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shockwave Medical 0 3 4 0 2.57
Tandem Diabetes Care 0 3 11 0 2.79

Shockwave Medical presently has a consensus price target of $47.17, suggesting a potential upside of 2.18%. Tandem Diabetes Care has a consensus price target of $78.00, suggesting a potential downside of 0.91%. Given Shockwave Medical’s higher probable upside, research analysts clearly believe Shockwave Medical is more favorable than Tandem Diabetes Care.

Summary

Tandem Diabetes Care beats Shockwave Medical on 5 of the 9 factors compared between the two stocks.

About Shockwave Medical

ShockWave Medical, Inc., a medical device company, develops and commercializes intravascular lithotripsy technology to treat calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases worldwide. The company offers M5 catheters for treating above-the-knee peripheral artery disease; C2 catheters for treating coronary artery disease; and S4 catheters or treating below-the-knee peripheral artery disease. It serves interventional cardiologists, vascular surgeons, and interventional radiologists through sales representatives and sales managers, and distributors. The company was incorporated in 2009 and is headquartered in Santa Clara, California.

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.

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