Reviewing Orthofix Medical (NASDAQ:OFIX) and CVRx (NASDAQ:CVRX)

Orthofix Medical (NASDAQ:OFIX) and CVRx (NASDAQ:CVRX) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility & Risk

Orthofix Medical has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, CVRx has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Orthofix Medical and CVRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orthofix Medical	-11.21%	-20.38%	-11.03%
CVRx	-94.10%	-99.32%	-45.83%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Orthofix Medical and CVRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orthofix Medical	1	2	3	0	2.33
CVRx	2	0	3	2	2.71

Orthofix Medical presently has a consensus target price of $17.25, suggesting a potential upside of 50.39%. CVRx has a consensus target price of $11.20, suggesting a potential upside of 18.39%. Given Orthofix Medical’s higher possible upside, analysts plainly believe Orthofix Medical is more favorable than CVRx.

Institutional & Insider Ownership

89.8% of Orthofix Medical shares are owned by institutional investors. Comparatively, 75.3% of CVRx shares are owned by institutional investors. 1.3% of Orthofix Medical shares are owned by insiders. Comparatively, 18.9% of CVRx 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.

Earnings & Valuation

This table compares Orthofix Medical and CVRx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orthofix Medical	$822.31 million	0.56	-$92.19 million	($2.34)	-4.90
CVRx	$56.65 million	4.39	-$53.31 million	($2.05)	-4.61

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

Summary

CVRx beats Orthofix Medical on 8 of the 14 factors compared between the two stocks.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

About CVRx

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. The company offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure with reduced ejection fraction or systolic heart failure. It sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, and internationally. The company was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.