Cardiovascular Systems (NASDAQ:CSII) and TELA Bio (NASDAQ:TELA) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation & Earnings

This table compares Cardiovascular Systems and TELA Bio’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardiovascular Systems $236.54 million 4.77 -$27.24 million ($0.79) -40.46
TELA Bio $15.45 million 9.69 -$22.42 million ($17.10) -0.77

TELA Bio has lower revenue, but higher earnings than Cardiovascular Systems. Cardiovascular Systems is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.7% of Cardiovascular Systems shares are owned by institutional investors. Comparatively, 57.0% of TELA Bio shares are owned by institutional investors. 3.0% of Cardiovascular Systems shares are owned by company insiders. Comparatively, 19.7% of TELA Bio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Cardiovascular Systems and TELA Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardiovascular Systems -11.51% -15.62% -10.89%
TELA Bio N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations for Cardiovascular Systems and TELA Bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardiovascular Systems 0 0 8 0 3.00
TELA Bio 0 0 5 0 3.00

Cardiovascular Systems currently has a consensus target price of $46.75, indicating a potential upside of 46.28%. TELA Bio has a consensus target price of $19.60, indicating a potential upside of 49.28%. Given TELA Bio’s higher possible upside, analysts clearly believe TELA Bio is more favorable than Cardiovascular Systems.

Summary

TELA Bio beats Cardiovascular Systems on 8 of the 12 factors compared between the two stocks.

Cardiovascular Systems Company Profile

Cardiovascular Systems, Inc., a medical device company, develops, manufactures, and commercializes various devices to treat vascular and coronary diseases in the United States. The company offers peripheral arterial disease products, including Diamondback 360 Peripheral, Predator 360, Stealth 360 Peripheral Orbital Atherectomy System (OAS), Diamondback 360 60cm Peripheral OAS, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral, Diamondback 360 2.00 Peripheral, Diamondback 360 200cm Peripheral, and Diamondback 360 180cm Peripheral, which are catheter-based platforms for treating a range of plaque types in leg arteries above and below the knee, including calcified plaque, as well as address various limitations associated with surgical, catheter, and pharmacological treatment alternatives. It also provides Diamondback 360 Coronary OAS, an atherectomy device for the treatment of calcified coronary arteries. Cardiovascular Systems, Inc. was founded in 1989 and is headquartered in St. Paul, Minnesota.

TELA Bio Company Profile

TELA Bio, Inc., a medical technology company, focuses on the design, development, and marketing of tissue reinforcement materials to address unmet needs in soft tissue reconstruction. It offers reinforced tissue matrix products for a variety of reconstruction procedures, including hernia repair, abdominal wall reconstruction, and plastic and reconstructive surgery. The company provides a portfolio of OviTex Reinforced Tissue Matrix or OviTex products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix or OviTex PRS products to address the unmet needs in plastic and reconstructive surgery. It markets its products through a single direct sales force, principally in the United States. The company was founded in 2012 and is headquartered in Malvern, Pennsylvania.

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