OrthoPediatrics (NASDAQ:KIDS) versus InspireMD (NYSE:NSPR) Critical Review

OrthoPediatrics (NASDAQ:KIDSGet Free Report) and InspireMD (NYSE:NSPRGet Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

69.1% of OrthoPediatrics shares are owned by institutional investors. Comparatively, 44.8% of InspireMD shares are owned by institutional investors. 32.7% of OrthoPediatrics shares are owned by company insiders. Comparatively, 34.1% of InspireMD shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

OrthoPediatrics has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares OrthoPediatrics and InspireMD”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OrthoPediatrics $212.45 million 2.64 -$20.97 million ($1.75) -13.18
InspireMD $7.03 million 10.29 -$19.92 million ($0.79) -2.99

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

Profitability

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

Net Margins Return on Equity Return on Assets
OrthoPediatrics -15.00% -5.78% -4.80%
InspireMD -413.96% -69.42% -57.68%

Analyst Ratings

This is a summary of recent ratings and recommmendations for OrthoPediatrics and InspireMD, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OrthoPediatrics 0 1 5 0 2.83
InspireMD 0 0 2 0 3.00

OrthoPediatrics presently has a consensus target price of $35.83, suggesting a potential upside of 55.32%. InspireMD has a consensus target price of $4.50, suggesting a potential upside of 90.68%. Given InspireMD’s stronger consensus rating and higher probable upside, analysts clearly believe InspireMD is more favorable than OrthoPediatrics.

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 InspireMD

(Get Free Report)

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.

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