Head to Head Comparison: GBS (NYSE:GBS) vs. Tandem Diabetes Care (NASDAQ:TNDM)

Tandem Diabetes Care (NASDAQ:TNDM) and GBS (NYSE:GBS) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk and Volatility

Tandem Diabetes Care has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tandem Diabetes Care and GBS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandem Diabetes Care	0	3	15	0	2.83
GBS	0	0	0	0	0.00

Tandem Diabetes Care presently has a consensus target price of $53.81, indicating a potential upside of 60.78%. Given Tandem Diabetes Care’s stronger consensus rating and higher possible upside, equities analysts plainly believe Tandem Diabetes Care is more favorable than GBS.

Profitability

This table compares Tandem Diabetes Care and GBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandem Diabetes Care	-14.84%	-44.19%	-11.99%
GBS	N/A	-85.64%	-54.42%

Institutional and Insider Ownership

2.8% of GBS shares are owned by institutional investors. 2.2% of Tandem Diabetes Care shares are owned by company insiders. Comparatively, 0.3% of GBS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Tandem Diabetes Care and GBS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandem Diabetes Care	$747.72 million	2.94	-$222.61 million	($1.93)	-17.34
GBS	$440,000.00	80.20	-$8.31 million	($0.56)	-4.23

GBS has lower revenue, but higher earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than GBS, indicating that it is currently the more affordable of the two stocks.

Summary

Tandem Diabetes Care beats GBS on 7 of the 13 factors compared between the two stocks.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.