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

Profitability

This table compares Obalon Therptcs and OrthoPediatrics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therptcs -459.54% -59.77% -47.02%
OrthoPediatrics N/A N/A N/A

Valuation & Earnings

This table compares Obalon Therptcs and OrthoPediatrics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obalon Therptcs $3.39 million 38.79 -$20.46 million ($1.99) -3.79
OrthoPediatrics N/A N/A N/A N/A N/A

OrthoPediatrics has lower revenue, but higher earnings than Obalon Therptcs.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Obalon Therptcs and OrthoPediatrics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therptcs 1 0 2 0 2.33
OrthoPediatrics 0 0 4 0 3.00

Obalon Therptcs currently has a consensus price target of $12.00, suggesting a potential upside of 59.15%. OrthoPediatrics has a consensus price target of $23.67, suggesting a potential upside of 26.09%. Given Obalon Therptcs’ higher probable upside, equities analysts plainly believe Obalon Therptcs is more favorable than OrthoPediatrics.

Insider & Institutional Ownership

44.1% of Obalon Therptcs shares are held by institutional investors. 16.4% of Obalon Therptcs shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

OrthoPediatrics beats Obalon Therptcs on 5 of the 9 factors compared between the two stocks.

Obalon Therptcs Company Profile

Obalon Therapeutics, Inc. is a United States-based commercial-stage medical device company focused on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. The Company’s product, Obalon balloon system, is a swallowable, gas-filled intragastric balloon designed to provide weight loss in obese patients. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. All balloons must be removed six months after the first balloon is placed. The Obalon balloon system intends to provide patients and physicians with a reversible and repeatable weight loss solution in an outpatient setting, without altering patient anatomy or requiring surgery. The Company has received Premarket approval (PMA) for its Obalon balloon system based on the results of its United States pivotal clinical trial, referred to as the SMART trial.

OrthoPediatrics Company Profile

OrthoPediatrics Corp. is a United States-based medical device company. The Company designs, develops and commercializes orthopedic implants and instruments to meet the specialized needs of pediatric surgeons and their patients. It operates through the OrthoPediatrics segment, which designs, develops and markets implants and devices for children with orthopedic problems. Its products include RESPONSE Spinal Deformity System, PediNail Intramedullary Nail System, PediLoc Plating Systems, ACL Reconstruction System, Locking Cannulated Blade (LCB) plate system, Locking Proximal Femur (LPF) plate system, PediFlex Flexible Nailing System, PediFrag, PediLoc Extension Osteotomy Plate (PLEO), PediLoc Femur Locking Plate System, PediLoc Tibia Locking Plate System, PediPlates system and Spica Table. It markets over 20 surgical systems that serve approximately three categories within pediatric orthopedic market, including trauma and deformity, complex spine and anterior cruciate ligament reconstruct

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