Alpha Tau Medical (NASDAQ:DRTS) & Tenon Medical (NASDAQ:TNON) Critical Survey

Tenon Medical (NASDAQ:TNON) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

22.7% of Tenon Medical shares are owned by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are owned by institutional investors. 4.7% of Tenon Medical shares are owned by insiders. Comparatively, 39.5% of Alpha Tau Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Tenon Medical and Alpha Tau Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	0	0	2	0	3.00
Alpha Tau Medical	0	0	2	0	3.00

Tenon Medical presently has a consensus target price of $5.50, suggesting a potential upside of 122.67%. Alpha Tau Medical has a consensus target price of $8.00, suggesting a potential upside of 212.50%. Given Alpha Tau Medical’s higher possible upside, analysts plainly believe Alpha Tau Medical is more favorable than Tenon Medical.

Volatility and Risk

Tenon Medical has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Tenon Medical and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	-413.88%	-1,785.88%	-164.26%
Alpha Tau Medical	N/A	-38.62%	-29.89%

Earnings & Valuation

This table compares Tenon Medical and Alpha Tau Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$3.32 million	2.34	-$15.58 million	($27.23)	-0.09
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.45)	-5.69

Tenon Medical has higher revenue and earnings than Alpha Tau Medical. Alpha Tau Medical is trading at a lower price-to-earnings ratio than Tenon Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Alpha Tau Medical beats Tenon Medical on 6 of the 11 factors compared between the two stocks.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.