K2M Group (NASDAQ:KTWO) and Atrion (NASDAQ:ATRI) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for K2M Group and Atrion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K2M Group 0 7 4 0 2.36
Atrion 0 0 0 0 N/A

K2M Group presently has a consensus target price of $26.00, indicating a potential downside of 4.59%. Given K2M Group’s higher probable upside, equities research analysts clearly believe K2M Group is more favorable than Atrion.

Dividends

Atrion pays an annual dividend of $5.40 per share and has a dividend yield of 0.8%. K2M Group does not pay a dividend. Atrion has raised its dividend for 15 consecutive years.

Earnings & Valuation

This table compares K2M Group and Atrion’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
K2M Group $258.03 million 4.60 -$37.14 million ($0.87) -31.32
Atrion $146.60 million 8.83 $36.59 million N/A N/A

Atrion has lower revenue, but higher earnings than K2M Group.

Institutional & Insider Ownership

61.1% of Atrion shares are held by institutional investors. 6.0% of K2M Group shares are held by company insiders. Comparatively, 22.5% of Atrion shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares K2M Group and Atrion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K2M Group -14.49% -16.27% -10.15%
Atrion 22.57% 17.99% 16.16%

Volatility and Risk

K2M Group has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Atrion has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Summary

Atrion beats K2M Group on 10 of the 14 factors compared between the two stocks.

About K2M Group

K2M Group Holdings, Inc., a medical device company, provides spine and minimally invasive solutions in the United States and internationally. The company offers implants, disposables, and instruments primarily to hospitals for use by spine surgeons to treat spinal pathologies, such as deformity, trauma, and tumor. Its complex spine products include EVEREST, MESA, and MESA 2 deformity spinal systems; NILE alternative and proximal fixation spinal systems; MESA rail deformity spinal systems; Cricket spinal correction rod reduction instrumentation; CAPRI corpectomy cage systems; MESA small stature, rail small stature, and mini spinal systems; SERENGETI complex spine minimally invasive retractor systems; RAVINE complex spine lateral access systems; SANTORINI corpectomy cage systems; YUKON OCT spinal systems; and PALO ALTO cervical static corpectomy cage systems. The company's minimally invasive surgery products consist of EVEREST minimally invasive spinal and XT spinal, SERENGETI minimally invasive retractor, MOJAVE PL 3D expandable interbody, RAVINE lateral access, CASCADIA lateral 3D interbody, ALEUTIAN lateral interbody, and TERRA NOVA minimally invasive access systems. In addition, its degenerative spine products comprise EVEREST degenerative spinal, CASCADIA and ALEUTIAN interbody, SAHARA AL expandable stabilization, RHINE cervical disc, CHESAPEAKE interbody, PYRENEES cervical plate, and BLUE RIDGE hybrid cervical plate systems. Further, the company provides Balance ACS, a platform that includes tools to assist surgeons with obtaining authorization from healthcare insurers. K2M Group Holdings, Inc. markets and sells its products through direct sales employees, independent sales agencies, and distributor partners. The company was founded in 2004 and is headquartered in Leesburg, Virginia.

About Atrion

Atrion Corporation develops, manufactures, and sells products for fluid delivery, cardiovascular, and ophthalmology applications worldwide. Its fluid delivery products include valves that fill, hold, and release controlled amounts of fluids or gasses for use in various intubation, intravenous, catheter, and other applications in the anesthesia and oncology fields, as well as promote infection control in hospital and home healthcare environments. The company's cardiovascular products comprise MPS2 myocardial protection system that delivers fluids and medications, and mixes critical drugs, as well as controls temperature, pressure, and other variables; cardiac surgery vacuum relief valves; silicone vessel loops for retracting and occluding vessels; and inflation devices for balloon catheter dilation, stent deployment, and fluid dispensing, as well as products that are used in heart bypass surgery. Its ophthalmic products include specialized medical devices that disinfect contact lenses; and a line of balloon catheters, which are used for the treatment of nasolacrimal duct obstruction in children and adults. The company also manufactures instrumentation and associated disposables that measures the activated clotting time of blood; and a line of products designed for safe needle and scalpel blade containment. In addition, it manufactures inflation systems and valves used in marine and aviation safety products; components used in inflatable survival products and structures; one-way and two-way pressure relief valves that protect sensitive electronics; and other products during transport in other medical and non-medical applications. The company sells its products to physicians, hospitals, clinics, and other treatment centers, as well as other equipment manufacturers through direct sales personnel, independent sales representatives, and distributors. Atrion Corporation was founded in 1944 and is headquartered in Allen, Texas.

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