Small-cap medical companies TruBridge (NASDAQ:TBRG) and Tivic Health Systems (NASDAQ:TIVC) are currently under scrutiny as investors seek to determine which stock presents a better opportunity. A detailed comparison of both firms highlights significant differences across several key investment metrics, including valuation, risk, institutional ownership, and profitability.
Ownership and Institutional Investment
Institutional investors hold a substantial share of TruBridge, with approximately 88.6% of its shares held by these entities. This strong institutional backing often indicates confidence in the company’s future performance. In contrast, only 4.3% of Tivic Health Systems shares are owned by institutional investors, suggesting less market confidence. Additionally, insider ownership reveals that 10.7% of TruBridge shares are held by company insiders, compared to a mere 0.5% for Tivic Health Systems. Such figures may reflect a stronger alignment between company leadership and shareholder interests in TruBridge.
Risk and Volatility Assessment
When examining risk, TruBridge displays a beta of 0.59, indicating that its stock is 41% less volatile than the S&P 500. Conversely, Tivic Health Systems has a beta of 1.97, suggesting it is 97% more volatile than the broader market. This discrepancy in volatility could be a crucial consideration for investors with varying risk tolerances.
Valuation and Earnings Comparison
A closer look at the valuation metrics reveals that while Tivic Health Systems generates lower revenue, it reports higher earnings than TruBridge. Currently, Tivic is trading at a lower price-to-earnings ratio, suggesting it may offer a more attractive entry point for potential investors looking for value. This relationship between earnings and stock price is a critical factor for those assessing long-term growth potential.
Profitability Metrics
In terms of profitability, a comparative analysis shows that TruBridge outperforms Tivic Health Systems in several key areas, including net margins and returns on equity and assets. Such financial health is critical for investors focusing on sustainable profitability and growth.
The overall assessment indicates that TruBridge excels in 11 out of the 14 factors evaluated in this comparison. This performance may position it as a more favorable investment choice in the small-cap medical sector.
Company Profiles
TruBridge, founded in 1979 and headquartered in Mobile, Alabama, specializes in providing healthcare solutions for community hospitals and clinics. It operates in three segments: Revenue Cycle Management, Electronic Health Records, and Patient Engagement. The company has developed a suite of services including eligibility verification, claim management, and various IT solutions aimed at improving patient outcomes.
On the other hand, Tivic Health Systems is a newer entrant, incorporated in 2016 and based in Hayward, California. The company focuses on bioelectronic medicine, with its flagship product being ClearUP, designed to treat sinus and nasal inflammation. Tivic markets its products through direct-to-consumer channels and various online platforms, reflecting a modern approach to product distribution in the healthcare sector.
In conclusion, while both companies operate in the healthcare space, the data suggests that TruBridge currently presents a stronger investment case compared to Tivic Health Systems. As the market evolves, investors will need to closely monitor both firms’ performance and strategic initiatives to make informed decisions.
