TELA Bio (NASDAQ:TELA – Get Free Report) and Pulmonx (NASDAQ:LUNG – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Valuation and Earnings
This table compares TELA Bio and Pulmonx”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELA Bio | $58.45 million | 2.12 | -$46.66 million | ($1.69) | -1.86 |
| Pulmonx | $68.68 million | 3.65 | -$60.84 million | ($1.47) | -4.31 |
TELA Bio has higher earnings, but lower revenue than Pulmonx. Pulmonx is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| TELA Bio | -60.49% | -556.18% | -63.13% |
| Pulmonx | -72.01% | -53.88% | -33.47% |
Volatility & Risk
TELA Bio has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for TELA Bio and Pulmonx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELA Bio | 0 | 0 | 4 | 0 | 3.00 |
| Pulmonx | 0 | 1 | 5 | 0 | 2.83 |
TELA Bio presently has a consensus price target of $9.25, suggesting a potential upside of 194.59%. Pulmonx has a consensus price target of $14.67, suggesting a potential upside of 131.34%. Given TELA Bio’s stronger consensus rating and higher possible upside, research analysts plainly believe TELA Bio is more favorable than Pulmonx.
Insider and Institutional Ownership
94.4% of TELA Bio shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 6.0% of TELA Bio shares are held by company insiders. Comparatively, 5.7% of Pulmonx shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
TELA Bio beats Pulmonx on 7 of the 13 factors compared between the two stocks.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
About Pulmonx
Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
Receive News & Ratings for TELA Bio Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TELA Bio and related companies with MarketBeat.com's FREE daily email newsletter.
