Head to Head Contrast: Hyperfine (NASDAQ:HYPR) versus Treace Medical Concepts (NASDAQ:TMCI)

Treace Medical Concepts (NASDAQ:TMCI) and Hyperfine (NASDAQ:HYPR) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Treace Medical Concepts and Hyperfine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$212.69 million	1.31	-$59.00 million	($0.93)	-4.60
Hyperfine	$11.40 million	6.75	-$35.57 million	($0.38)	-1.91

Hyperfine has lower revenue, but higher earnings than Treace Medical Concepts. Treace Medical Concepts is trading at a lower price-to-earnings ratio than Hyperfine, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

84.1% of Treace Medical Concepts shares are owned by institutional investors. Comparatively, 15.0% of Hyperfine shares are owned by institutional investors. 23.4% of Treace Medical Concepts shares are owned by company insiders. Comparatively, 26.3% of Hyperfine shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Treace Medical Concepts and Hyperfine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treace Medical Concepts	-28.99%	-71.37%	-30.49%
Hyperfine	-210.75%	-97.88%	-61.81%

Volatility & Risk

Treace Medical Concepts has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Hyperfine has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Treace Medical Concepts and Hyperfine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treace Medical Concepts	2	4	1	0	1.86
Hyperfine	1	1	3	0	2.40

Treace Medical Concepts currently has a consensus target price of $5.17, suggesting a potential upside of 20.79%. Hyperfine has a consensus target price of $2.03, suggesting a potential upside of 180.15%. Given Hyperfine’s stronger consensus rating and higher probable upside, analysts plainly believe Hyperfine is more favorable than Treace Medical Concepts.

Summary

Hyperfine beats Treace Medical Concepts on 8 of the 14 factors compared between the two stocks.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.