Invacare Corporation (NYSE: IVC) and Tandem Diabetes Care (NASDAQ:TNDM) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Dividends

Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. Tandem Diabetes Care does not pay a dividend. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

45.2% of Tandem Diabetes Care shares are owned by institutional investors. 2.6% of Invacare Corporation shares are owned by company insiders. Comparatively, 20.9% of Tandem Diabetes Care shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Invacare Corporation and Tandem Diabetes Care’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invacare Corporation $980.12 million 0.45 -$13.64 million ($1.93) -6.92
Tandem Diabetes Care $81.51 million 0.38 -$76.17 million ($2.64) -0.24

Invacare Corporation has higher revenue and earnings than Tandem Diabetes Care. Invacare Corporation 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.

Analyst Ratings

This is a breakdown of recent ratings for Invacare Corporation and Tandem Diabetes Care, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invacare Corporation 0 1 2 0 2.67
Tandem Diabetes Care 0 5 4 0 2.44

Invacare Corporation presently has a consensus price target of $14.50, indicating a potential upside of 8.53%. Tandem Diabetes Care has a consensus price target of $5.08, indicating a potential upside of 716.99%. Given Tandem Diabetes Care’s higher probable upside, analysts plainly believe Tandem Diabetes Care is more favorable than Invacare Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Invacare Corporation -6.42% -12.79% -5.88%
Tandem Diabetes Care -110.70% -1,177.11% -87.18%

Risk and Volatility

Invacare Corporation has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Summary

Invacare Corporation beats Tandem Diabetes Care on 11 of the 15 factors compared between the two stocks.

Invacare Corporation Company Profile

Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.

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.

Receive News & Stock Ratings for Invacare Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Invacare Corporation and related stocks with our FREE daily email newsletter.