Nihon Kohden (OTCMKTS:NHNKY) and OrthoPediatrics (NASDAQ:KIDS) Head-To-Head Contrast

Nihon Kohden (OTCMKTS:NHNKY) and OrthoPediatrics (NASDAQ:KIDS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

This table compares Nihon Kohden and OrthoPediatrics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nihon Kohden	6.08%	9.46%	6.68%
OrthoPediatrics	-16.31%	-7.01%	-4.86%

Institutional and Insider Ownership

0.1% of Nihon Kohden shares are owned by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are owned by institutional investors. 32.7% of OrthoPediatrics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nihon Kohden and OrthoPediatrics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nihon Kohden	$1.56 billion	1.03	$95.79 million	$0.59	16.23
OrthoPediatrics	$236.35 million	2.09	-$39.65 million	($1.68)	-11.44

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

Volatility & Risk

Nihon Kohden has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Nihon Kohden and OrthoPediatrics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nihon Kohden	0	1	0	1	3.00
OrthoPediatrics	1	1	9	0	2.73

OrthoPediatrics has a consensus price target of $24.78, indicating a potential upside of 28.92%. Given OrthoPediatrics’ higher possible upside, analysts plainly believe OrthoPediatrics is more favorable than Nihon Kohden.

Summary

Nihon Kohden beats OrthoPediatrics on 9 of the 15 factors compared between the two stocks.

About Nihon Kohden

Nihon Kohden Corporation engages in development, manufacturing, sale, maintenance, and consultation of medical electronic equipment, and related systems and products in Japan, Americas, Europe, rest of Asia, and internationally. It offers physiological measuring equipment comprising electrocardiographs, electroencephalographs, and polygraphs for Cath-labs; patient monitoring systems, such as beside and central monitors; and treatment equipment including defibrillators, automated external defibrillators, ventilators, and pacemakers. The company also provides medical support system, which includes diagnostic and clinical information system; and in-vitro diagnostic equipment comprising hematology and clinical chemistry analyzers. In addition, it operates insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Shinjuku, Japan.

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.