InfuSystem (NYSE:INFU) and T2 Biosystems (NASDAQ:TTOO) Financial Analysis

InfuSystem (NYSE:INFU) and T2 Biosystems (NASDAQ:TTOO) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares InfuSystem and T2 Biosystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InfuSystem	$125.79 million	1.07	$870,000.00	$0.01	630.63
T2 Biosystems	$7.16 million	1.94	-$50.08 million	N/A	N/A

InfuSystem has higher revenue and earnings than T2 Biosystems.

Analyst Ratings

This is a summary of current recommendations and price targets for InfuSystem and T2 Biosystems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InfuSystem	0	0	0	2	4.00
T2 Biosystems	0	1	0	0	2.00

InfuSystem currently has a consensus target price of $13.00, suggesting a potential upside of 106.35%. T2 Biosystems has a consensus target price of $5.00, suggesting a potential upside of 527.51%. Given T2 Biosystems’ higher probable upside, analysts plainly believe T2 Biosystems is more favorable than InfuSystem.

Insider & Institutional Ownership

71.1% of InfuSystem shares are owned by institutional investors. Comparatively, 23.2% of T2 Biosystems shares are owned by institutional investors. 10.2% of InfuSystem shares are owned by insiders. Comparatively, 0.1% of T2 Biosystems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares InfuSystem and T2 Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InfuSystem	0.28%	0.70%	0.35%
T2 Biosystems	-677.58%	N/A	-155.89%

Risk & Volatility

InfuSystem has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, T2 Biosystems has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Summary

InfuSystem beats T2 Biosystems on 10 of the 12 factors compared between the two stocks.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

About T2 Biosystems

T2 Biosystems, Inc., an in vitro diagnostics company, develops and sells diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument that runs various diagnostic tests from patient samples; T2Candida panel, a direct-from-blood molecular diagnostic test panel that detects lethal form of common blood stream infections, which cause sepsis and candidemia; T2Bacteria panel, a direct-from-blood molecular diagnostic test panel, which detects bacterial pathogens in blood stream infections; T2Resistance panel, a direct-from-blood test that identifies carbapenem resistance genes; and T2Biothreat, a direct-from-blood molecular diagnostic test panel that runs on the T2Dx Instrument and detects biothreat pathogens. In addition, it is developing T2Cauris panel, a direct-from-blood molecular diagnostic test that runs on the T2Dx Instrument and detects Candida auris; and T2Lyme panel, a direct-from-blood molecular diagnostic test panel that runs on the T2Dx Instrument to identify the bacteria that cause Lyme disease. T2 Biosystems, Inc. was incorporated in 2006 and is headquartered in Lexington, Massachusetts.