Critical Review: OrthoPediatrics (NASDAQ:KIDS) and ResMed (NYSE:RMD)

OrthoPediatrics (NASDAQ:KIDSGet Free Report) and ResMed (NYSE:RMDGet Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Earnings & Valuation

This table compares OrthoPediatrics and ResMed’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OrthoPediatrics $148.73 million 4.08 -$20.97 million ($0.92) -27.99
ResMed $4.22 billion 6.69 $897.56 million $6.05 31.75

ResMed has higher revenue and earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

OrthoPediatrics has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

68.4% of OrthoPediatrics shares are held by institutional investors. Comparatively, 63.8% of ResMed shares are held by institutional investors. 32.6% of OrthoPediatrics shares are held by insiders. Comparatively, 1.2% of ResMed shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
OrthoPediatrics -14.10% -5.03% -4.37%
ResMed 19.77% 23.86% 14.78%

Analyst Ratings

This is a summary of recent recommendations and price targets for OrthoPediatrics and ResMed, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OrthoPediatrics 0 1 3 0 2.75
ResMed 0 3 7 0 2.70

OrthoPediatrics presently has a consensus price target of $42.50, indicating a potential upside of 65.05%. ResMed has a consensus price target of $196.30, indicating a potential upside of 2.21%. Given OrthoPediatrics’ stronger consensus rating and higher possible upside, equities analysts clearly believe OrthoPediatrics is more favorable than ResMed.

Summary

ResMed beats OrthoPediatrics on 9 of the 14 factors compared between the two stocks.

About OrthoPediatrics

(Get Free Report)

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 ResMed

(Get Free Report)

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. The company was founded in 1989 and is headquartered in San Diego, California.

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