Financial Survey: Nihon Kohden (OTCMKTS:NHNKY) versus Tactile Systems Technology (NASDAQ:TCMD)

Nihon Kohden (OTCMKTS:NHNKY) and Tactile Systems Technology (NASDAQ:TCMD) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Nihon Kohden has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Tactile Systems Technology has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Nihon Kohden and Tactile Systems Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nihon Kohden	5.77%	6.74%	4.96%
Tactile Systems Technology	5.06%	7.72%	5.59%

Valuation and Earnings

This table compares Nihon Kohden and Tactile Systems Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nihon Kohden	$1.48 billion	1.42	$93.05 million	$0.54	22.69
Tactile Systems Technology	$292.98 million	1.11	$16.96 million	$0.62	23.44

Nihon Kohden has higher revenue and earnings than Tactile Systems Technology. Nihon Kohden is trading at a lower price-to-earnings ratio than Tactile Systems Technology, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of Nihon Kohden shares are owned by institutional investors. Comparatively, 83.4% of Tactile Systems Technology shares are owned by institutional investors. 2.5% of Tactile Systems Technology 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Nihon Kohden and Tactile Systems Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nihon Kohden	0	0	0	0	0.00
Tactile Systems Technology	0	5	1	1	2.43

Tactile Systems Technology has a consensus target price of $16.83, suggesting a potential upside of 15.85%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Tactile Systems Technology is more favorable than Nihon Kohden.

Summary

Tactile Systems Technology beats Nihon Kohden on 11 of the 15 factors compared between the two stocks.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

About Tactile Systems Technology

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.