Modular Medical (NASDAQ:MODD) & Tandem Diabetes Care (NASDAQ:TNDM) Financial Analysis

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

Earnings & Valuation

This table compares Tandem Diabetes Care and Modular Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandem Diabetes Care	$747.72 million	2.94	-$222.61 million	($1.93)	-17.34
Modular Medical	N/A	N/A	-$17.47 million	($0.53)	-2.08

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tandem Diabetes Care	-14.84%	-44.19%	-11.99%
Modular Medical	N/A	-246.01%	-191.95%

Volatility & Risk

Tandem Diabetes Care has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tandem Diabetes Care and Modular Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandem Diabetes Care	0	3	15	0	2.83
Modular Medical	0	0	1	0	3.00

Tandem Diabetes Care currently has a consensus price target of $53.81, indicating a potential upside of 60.78%. Modular Medical has a consensus price target of $5.00, indicating a potential upside of 354.55%. Given Modular Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Modular Medical is more favorable than Tandem Diabetes Care.

Institutional and Insider Ownership

27.5% of Modular Medical shares are held by institutional investors. 2.2% of Tandem Diabetes Care shares are held by insiders. Comparatively, 20.5% of Modular Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Modular Medical beats Tandem Diabetes Care on 8 of the 13 factors compared between the two stocks.

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.

About Modular Medical

Modular Medical, Inc. operates as a medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for type-1 and type-2 diabetes. The company is headquartered in San Diego, California.