Head to Head Analysis: Apollo Endosurgery (APEN) and Orthopediatrics (KIDS)

Apollo Endosurgery (NASDAQ: APEN) and Orthopediatrics (NASDAQ:KIDS) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

32.8% of Apollo Endosurgery shares are held by institutional investors. Comparatively, 35.4% of Orthopediatrics shares are held by institutional investors. 52.8% of Apollo Endosurgery shares are held by insiders. Comparatively, 46.1% of Orthopediatrics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Apollo Endosurgery and Orthopediatrics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Endosurgery $64.31 million 2.64 -$27.29 million ($2.01) -3.86
Orthopediatrics $45.62 million 7.72 -$8.93 million ($5.70) -4.84

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

Analyst Ratings

This is a breakdown of current ratings for Apollo Endosurgery and Orthopediatrics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Endosurgery 0 2 1 0 2.33
Orthopediatrics 0 0 4 0 3.00

Apollo Endosurgery presently has a consensus price target of $9.83, suggesting a potential upside of 26.88%. Orthopediatrics has a consensus price target of $25.67, suggesting a potential downside of 6.97%. Given Apollo Endosurgery’s higher possible upside, equities analysts plainly believe Apollo Endosurgery is more favorable than Orthopediatrics.

Profitability

This table compares Apollo Endosurgery and Orthopediatrics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Endosurgery -46.55% -58.61% -27.54%
Orthopediatrics -61.99% -450.97% -43.68%

Summary

Apollo Endosurgery beats Orthopediatrics on 8 of the 13 factors compared between the two stocks.

Apollo Endosurgery Company Profile

Apollo Endosurgery, Inc., a medical technology company, focuses on the design, development, and commercialization of medical devices for the treatment of obesity. The company offers endo-bariatric products, such as Orbera intragastric balloon system and Orbera365 Managed Weight Loss System, which are non-surgical alternatives for the treatment of overweight and obese adults; and OverStitch endoscopic suturing system that enables endoscopic procedures by allowing physicians to place full-thickness sutures and secure the approximation of tissue through flexible endoscope. It also provides surgical products, including Lap-Band system, a system designed to provide minimally invasive long-term treatment of obesity; and accessories used in laparoscopic bariatric surgeries. The company sells its products primarily in the United States, Europe, Australia, Brazil, and Canada. Apollo Endosurgery, Inc. was founded in 2005 and is headquartered in Austin, Texas.

Orthopediatrics Company Profile

OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. The company's products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail products, PediLoc tibia products, locking cannulated blades, locking proximal femurs, spica tables, response spine systems, and pediguards; bandloc, a sub-laminar banding system; and sports medicine and other products, such as anterior cruciate ligament and medial patellofemoral ligament systems. Its products are used in the pediatric trauma and deformity procedures, as well as scoliosis procedures for the treatment of spinal deformity. The company serves pediatric orthopedic market, as well as caregivers. OrthoPediatrics Corp. was founded in 2007 and is headquartered in Warsaw, Indiana.

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