Critical Review: Tenon Medical (NASDAQ:TNON) vs. Glaukos (NYSE:GKOS)

Glaukos (NYSE:GKOS) and Tenon Medical (NASDAQ:TNON) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Volatility & Risk

Glaukos has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Glaukos	-24.60%	-0.97%	-0.71%
Tenon Medical	-257.85%	-907.60%	-124.84%

Analyst Ratings

This is a breakdown of current recommendations for Glaukos and Tenon Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glaukos	1	1	13	1	2.88
Tenon Medical	1	0	1	0	2.00

Glaukos presently has a consensus target price of $216.71, indicating a potential downside of 9.33%. Given Glaukos’ stronger consensus rating and higher probable upside, analysts plainly believe Glaukos is more favorable than Tenon Medical.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glaukos	$507.44 million	27.88	-$187.69 million	($2.94)	-81.30
Tenon Medical	$3.94 million	1.19	-$12.56 million	($44.87)	-0.04

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

Institutional and Insider Ownership

99.0% of Glaukos shares are held by institutional investors. Comparatively, 22.7% of Tenon Medical shares are held by institutional investors. 5.9% of Glaukos shares are held by company insiders. Comparatively, 17.7% of Tenon Medical shares are held by company 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

Glaukos beats Tenon Medical on 11 of the 14 factors compared between the two stocks.

About Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.

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.