Financial Comparison: OrthoPediatrics (NASDAQ:KIDS) and Arrayit (OTCMKTS:ARYC)

OrthoPediatrics (NASDAQ:KIDS) and Arrayit (OTCMKTS:ARYC) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

69.1% of OrthoPediatrics shares are owned by institutional investors. 32.7% of OrthoPediatrics shares are owned by company insiders. Comparatively, 58.0% of Arrayit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares OrthoPediatrics and Arrayit”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OrthoPediatrics	$236.35 million	1.94	-$39.65 million	($1.68)	-10.61
Arrayit	N/A	N/A	N/A	N/A	N/A

Arrayit has lower revenue, but higher earnings than OrthoPediatrics.

Analyst Ratings

This is a breakdown of recent ratings for OrthoPediatrics and Arrayit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OrthoPediatrics	1	1	8	1	2.82
Arrayit	0	0	0	0	0.00

OrthoPediatrics presently has a consensus price target of $24.44, indicating a potential upside of 37.17%. Given OrthoPediatrics’ stronger consensus rating and higher probable upside, research analysts plainly believe OrthoPediatrics is more favorable than Arrayit.

Profitability

This table compares OrthoPediatrics and Arrayit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OrthoPediatrics	-16.31%	-7.01%	-4.86%
Arrayit	N/A	N/A	N/A

Volatility and Risk

OrthoPediatrics has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Arrayit has a beta of -0.21, meaning that its stock price is 121% less volatile than the S&P 500.

Summary

OrthoPediatrics beats Arrayit on 7 of the 11 factors compared between the two stocks.

About OrthoPediatrics

OrthoPediatrics Corp., a medical device company, engages in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the United States and internationally. The company offers pediatric trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, The Fassier-Duval Telescopic Intramedullary System, SLIMTM Nail, The GAP Nail, The Free Gliding SCFE Screw System, GIROTM Growth Modulation System, PNP Tibia System, ApiFix Mid-C System, and Mitchell Ponseti. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.

About Arrayit

Arrayit Corporation, a life sciences technology company, develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation, biological function, and diagnostics worldwide. The company is involved in the development and support of microarray tools and components; custom printing and analysis of microarrays for research; and the identification and development of diagnostic microarrays and tools for early detection of treatable disease states. It offers microarray printing technology, which allows the manufacture of DNA, protein, antibody, lipid, carbohydrate, and other types of microarrays for research and diagnostic applications, including gene expression, genotyping, protein profiling, and others. The company also provides automated microarray manufacturing instruments, including NanoPrint, SpotBot Titan, SpotBot Extreme, SpotBo Protein, and Personal microarrayers, as well as SpotLight CCD fluorescence scanners, SpotWare colorimetric scanners, InnoScan laser scanners, TrayMix hybridization stations, ArrayMix hybridization stations, centrifuges, air jets, vacuum products, and laboratory tools and bioinformatics computers. In addition, it manufactures consumables, such as glass substrates and slides, reagents, solutions, kits, and clean room supplies; and provides variation identification platform technology that allows diagnostic tests to be performed by depositing approximately 100,000 patient samples onto a single microarray. Further, the company is involved in the import, export, manufacture, and distribution of wholesale industrial chemicals. Arrayit Corporation offers its tools and services to genomic research centers, pharmaceutical companies, academic institutions, clinical research organizations, government agencies, and biotechnology companies. The company is headquartered in Sunnyvale, California.