Orchestra BioMed (NASDAQ:OBIO – Get Free Report) and Tandem Diabetes Care (NASDAQ:TNDM – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Orchestra BioMed and Tandem Diabetes Care’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orchestra BioMed | -2,179.33% | -107.04% | -70.88% |
| Tandem Diabetes Care | -14.84% | -44.19% | -11.99% |
Analyst Recommendations
This is a summary of current ratings and target prices for Orchestra BioMed and Tandem Diabetes Care, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orchestra BioMed | 0 | 0 | 4 | 0 | 3.00 |
| Tandem Diabetes Care | 0 | 3 | 15 | 0 | 2.83 |
Valuation & Earnings
This table compares Orchestra BioMed and Tandem Diabetes Care”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orchestra BioMed | $2.65 million | 71.23 | -$49.12 million | ($1.61) | -3.08 |
| Tandem Diabetes Care | $747.72 million | 2.66 | -$222.61 million | ($1.93) | -15.68 |
Orchestra BioMed has higher earnings, but lower revenue than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Orchestra BioMed, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
53.5% of Orchestra BioMed shares are held by institutional investors. 6.7% of Orchestra BioMed shares are held by insiders. Comparatively, 2.2% of Tandem Diabetes Care shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Orchestra BioMed has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Summary
Orchestra BioMed beats Tandem Diabetes Care on 8 of the 14 factors compared between the two stocks.
About Orchestra BioMed
Orchestra BioMed Holdings, Inc. operates as a biomedical innovation company. The company’s flagship product candidates include BackBeat Cardiac Neuromodulation Therapy (CNT) for the treatment of hypertension (HTN); and Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of atherosclerotic artery disease. Its products also comprise FreeHold devices and minimally invasive surgery devices. The company has a collaboration agreement with Medtronic, Inc. for the development and commercialization of BackBeat CNT for the treatment of HTN in patients indicated for a cardiac pacemaker; and a strategic collaboration with Terumo Medical Corporation for the development and commercialization of Virtue SAB for the treatment of coronary and peripheral artery disease. Orchestra BioMed Holdings, Inc. is based in New Hope, Pennsylvania.
About Tandem Diabetes Care
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. 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 incorporated in 2006 and is headquartered in San Diego, California.
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