Nortech Systems Incorporated (NSYS) vs TELA Bio, Inc. (TELA)

Nortech Systems Incorporated and TELA Bio, Inc. are both Medical Devices companies. TELA Bio, Inc. is the larger, with a market value of $35.2M against $30.0M — 1.2× the size. TELA Bio, Inc. has negative trailing earnings, so its P/E is not meaningful; Nortech Systems Incorporated trades at 28.4×. TELA Bio, Inc. grew revenue faster over the last twelve months: 6.09% against 6.00%. Nortech Systems Incorporated has the higher net margin (0.83% vs −51.5%) and the higher return on invested capital (4.32% vs −217.1%). Across the 17 metrics below, Nortech Systems Incorporated leads on 11 and TELA Bio, Inc. on 6.

Valuation

Metric NSYS TELA Medical Devices median
P/E 28.38 n/m 25.58
P/S 0.24 0.60 2.54
P/B 0.84 n/m 2.48
Price to free cash flow 10.30 n/m 28.81
EV/EBITDA 8.11 n/m 11.51
EV/Sales 0.24 0.97 2.72
Earnings yield 3.52% (91.67%) (12.82%)
Free cash flow yield 9.71% (71.78%) (8.18%)

Profitability

Metric NSYS TELA Medical Devices median
Gross margin 16.44% 68.29% 57.76%
Operating margin 2.02% (42.56%) (15.07%)
Net margin 0.83% (51.53%) (14.45%)
Free cash flow margin 2.36% (39.57%) (3.88%)
Return on equity 3.02% 1,232.54% (10.35%)
Return on assets 1.33% (64.71%) (17.26%)
Return on invested capital 4.32% (217.11%) (5.27%)

Growth

Metric NSYS TELA Medical Devices median
Revenue growth (TTM) 6.00% 6.09% 10.41%
EPS growth (last fiscal year) 80.85% 37.59% 28.17%
Revenue growth, 5-year CAGR 2.60% 34.54% 15.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NSYS TELA Medical Devices median
Debt to equity 0.07 (3.53) 0.04
Current ratio 1.78 2.99 2.74
Net debt to EBITDA (0.45) (0.15) 0.54

Dividend

Metric NSYS TELA Medical Devices median
Dividend yield — — 1.02%
Payout ratio — — 0.37

Size

Metric NSYS TELA Medical Devices median
Market cap 29.96m 35.21m 239.53m

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