Reviewing Obalon Therapeutics (OBLN) and Orthopediatrics (KIDS)

Obalon Therapeutics (NASDAQ: OBLN) and Orthopediatrics (NASDAQ:KIDS) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Obalon Therapeutics and Orthopediatrics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obalon Therapeutics -459.54% -59.77% -47.02%
Orthopediatrics N/A N/A N/A

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Obalon Therapeutics and Orthopediatrics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obalon Therapeutics 1 0 2 0 2.33
Orthopediatrics 0 0 4 0 3.00

Obalon Therapeutics presently has a consensus target price of $12.00, indicating a potential upside of 53.85%. Orthopediatrics has a consensus target price of $23.67, indicating a potential upside of 23.97%. Given Obalon Therapeutics’ higher probable upside, equities analysts clearly believe Obalon Therapeutics is more favorable than Orthopediatrics.

Earnings and Valuation

This table compares Obalon Therapeutics and Orthopediatrics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obalon Therapeutics $3.39 million 40.13 -$20.46 million ($1.93) -4.04
Orthopediatrics N/A N/A N/A $0.96 19.89

Orthopediatrics has lower revenue, but higher earnings than Obalon Therapeutics. Obalon Therapeutics is trading at a lower price-to-earnings ratio than Orthopediatrics, indicating that it is currently the more affordable of the two stocks.

Summary

Orthopediatrics beats Obalon Therapeutics on 7 of the 11 factors compared between the two stocks.

About Obalon Therapeutics

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.

About Orthopediatrics

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

Receive News & Ratings for Obalon Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Obalon Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply