Pulmonx (NASDAQ:LUNG – Get Free Report) and OrthoPediatrics (NASDAQ:KIDS – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Profitability
This table compares Pulmonx and OrthoPediatrics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pulmonx | -55.03% | -96.66% | -38.32% |
| OrthoPediatrics | -15.72% | -8.10% | -5.54% |
Earnings and Valuation
This table compares Pulmonx and OrthoPediatrics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pulmonx | $90.50 million | 0.94 | -$54.00 million | ($1.16) | -1.70 |
| OrthoPediatrics | $252.72 million | 2.31 | -$39.65 million | ($1.68) | -13.31 |
OrthoPediatrics has higher revenue and earnings than Pulmonx. OrthoPediatrics is trading at a lower price-to-earnings ratio than Pulmonx, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Pulmonx and OrthoPediatrics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pulmonx | 1 | 0 | 3 | 0 | 2.50 |
| OrthoPediatrics | 1 | 1 | 9 | 0 | 2.73 |
Pulmonx currently has a consensus target price of $7.67, suggesting a potential upside of 288.19%. OrthoPediatrics has a consensus target price of $26.44, suggesting a potential upside of 18.27%. Given Pulmonx’s higher possible upside, analysts plainly believe Pulmonx is more favorable than OrthoPediatrics.
Insider and Institutional Ownership
91.0% of Pulmonx shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 7.5% of Pulmonx shares are held by company insiders. Comparatively, 32.5% of OrthoPediatrics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Pulmonx has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Summary
OrthoPediatrics beats Pulmonx on 10 of the 14 factors compared between the two stocks.
About Pulmonx
Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
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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