Edap Tms (NASDAQ:EDAP – Get Free Report) and OrthoPediatrics (NASDAQ:KIDS – 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, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional and Insider Ownership
62.7% of Edap Tms shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 0.2% of Edap Tms shares are held by company insiders. Comparatively, 31.8% of OrthoPediatrics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Edap Tms and OrthoPediatrics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Edap Tms | -30.95% | -61.60% | -26.70% |
| OrthoPediatrics | -20.06% | -6.86% | -4.97% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Edap Tms | 1 | 2 | 1 | 0 | 2.00 |
| OrthoPediatrics | 1 | 1 | 8 | 1 | 2.82 |
Edap Tms currently has a consensus target price of $8.50, suggesting a potential upside of 82.01%. OrthoPediatrics has a consensus target price of $23.89, suggesting a potential upside of 41.44%. Given Edap Tms’ higher possible upside, equities research analysts clearly believe Edap Tms is more favorable than OrthoPediatrics.
Volatility and Risk
Edap Tms has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Valuation & Earnings
This table compares Edap Tms and OrthoPediatrics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Edap Tms | $69.18 million | 2.52 | -$20.58 million | ($0.57) | -8.19 |
| OrthoPediatrics | $204.73 million | 2.07 | -$37.82 million | ($1.95) | -8.66 |
Edap Tms has higher earnings, but lower revenue 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.
Summary
OrthoPediatrics beats Edap Tms on 10 of the 15 factors compared between the two stocks.
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.
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.
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