OrthoPediatrics (NASDAQ:KIDS – Get Free Report) and Edap Tms (NASDAQ:EDAP – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Profitability
This table compares OrthoPediatrics and Edap Tms’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OrthoPediatrics | -20.06% | -6.86% | -4.97% |
| Edap Tms | -30.95% | -61.60% | -26.70% |
Institutional & Insider Ownership
69.1% of OrthoPediatrics shares are owned by institutional investors. Comparatively, 62.7% of Edap Tms shares are owned by institutional investors. 32.7% of OrthoPediatrics shares are owned by insiders. Comparatively, 0.2% of Edap Tms shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OrthoPediatrics | $204.73 million | 2.07 | -$37.82 million | ($1.95) | -8.66 |
| Edap Tms | $65.82 million | 2.65 | -$20.58 million | ($0.57) | -8.19 |
Edap Tms has lower revenue, but higher earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Edap Tms, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
OrthoPediatrics has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Edap Tms has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for OrthoPediatrics and Edap Tms, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OrthoPediatrics | 1 | 1 | 8 | 1 | 2.82 |
| Edap Tms | 1 | 2 | 1 | 0 | 2.00 |
OrthoPediatrics currently has a consensus target price of $23.89, indicating a potential upside of 41.44%. Edap Tms has a consensus target price of $8.50, indicating a potential upside of 82.01%. Given Edap Tms’ higher possible upside, analysts plainly believe Edap Tms is more favorable than OrthoPediatrics.
Summary
OrthoPediatrics beats Edap Tms on 10 of the 15 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 Edap Tms
EDAP TMS SA is a holding company, which, through its subsidiary, engages in the development, production, and marketing of minimally invasive medical devices for urological diseases. It operates through the High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) segments. The HIFU segment develops, manufactures, and markets devices for the minimally invasive ablation of certain types of localized tumors using HIFU technology. The UDS segment focuses on the development, marketing, manufacturing, and servicing of medical devices for the minimally invasive diagnosis or treatment of urological disorders, mainly urinary stones, and other clinical indications. The company was founded on December 3, 1979 and is headquartered in Vaulx-en-Velin, France.
Receive News & Ratings for OrthoPediatrics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OrthoPediatrics and related companies with MarketBeat.com's FREE daily email newsletter.
