T2 Biosystems (NASDAQ: TTOO) and Irhythm Technologies (NASDAQ:IRTC) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility & Risk
T2 Biosystems has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Irhythm Technologies has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This table compares T2 Biosystems and Irhythm Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for T2 Biosystems and Irhythm Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
T2 Biosystems presently has a consensus price target of $5.94, indicating a potential downside of 12.26%. Irhythm Technologies has a consensus price target of $71.17, indicating a potential upside of 12.61%. Given Irhythm Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Irhythm Technologies is more favorable than T2 Biosystems.
Earnings & Valuation
This table compares T2 Biosystems and Irhythm Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|T2 Biosystems||$4.66 million||52.33||-$62.42 million||($2.10)||-3.22|
|Irhythm Technologies||$98.51 million||15.13||-$29.42 million||($1.30)||-48.62|
Irhythm Technologies has higher revenue and earnings than T2 Biosystems. Irhythm Technologies is trading at a lower price-to-earnings ratio than T2 Biosystems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.3% of T2 Biosystems shares are held by institutional investors. Comparatively, 98.6% of Irhythm Technologies shares are held by institutional investors. 38.7% of T2 Biosystems shares are held by insiders. Comparatively, 23.3% of Irhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Irhythm Technologies beats T2 Biosystems on 10 of the 14 factors compared between the two stocks.
T2 Biosystems Company Profile
T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States. It provides T2 Magnetic Resonance platform that enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, and urine. The company also offers T2Dx, a bench-top instrument for sepsis, Lyme disease, and other applications, as well as T2Candida panel for the detection of candida species in human whole blood specimens. In addition, it is developing T2Bacteria, a multiplex diagnostic panel that detects various bacterial pathogens associated with sepsis; T2Lyme for the detection of various strains of Lyme disease-causing bacteria; and T2Plex, an integrated instrument for hemostasis applications, as well as T2HemoStat panel, a panel of diagnostic tests that can provide data across the hemostasis spectrum, including measurements of fibrinogen, platelet activity, and clot lysis. The company has collaboration agreement with Canon U.S. Life Sciences, Inc. to develop a novel diagnostic test panel to detect Lyme disease, a tick-borne illness; and Allergan Sales, LLC for the direct detection diagnostic test panel that adds additional bacteria species to the existing T2Bacteria product candidate and testing drug resistance directly in whole blood. T2 Biosystems, Inc. was founded in 2006 and is headquartered in Lexington, Massachusetts.
Irhythm Technologies Company Profile
iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. Its Zio XT monitor, a single-use, wire-free, and wearable patch-based biosensor, records patient's heartbeats and ECG data. The company was founded in 2006 and is headquartered in San Francisco, California.
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