OrthoPediatrics (NASDAQ:KIDS – Get Free Report) and Tenon Medical (NASDAQ:TNON – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares OrthoPediatrics and Tenon Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OrthoPediatrics | -20.06% | -6.85% | -5.00% |
| Tenon Medical | -429.45% | -332.11% | -106.82% |
Volatility and Risk
OrthoPediatrics has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Tenon Medical has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OrthoPediatrics | $227.41 million | 1.87 | -$37.82 million | ($1.95) | -8.68 |
| Tenon Medical | $2.95 million | 3.56 | -$13.67 million | ($5.00) | -0.24 |
Tenon Medical has lower revenue, but higher earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Tenon Medical, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
69.1% of OrthoPediatrics shares are held by institutional investors. Comparatively, 22.7% of Tenon Medical shares are held by institutional investors. 31.8% of OrthoPediatrics shares are held by insiders. Comparatively, 0.3% of Tenon Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for OrthoPediatrics and Tenon Medical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OrthoPediatrics | 1 | 1 | 7 | 0 | 2.67 |
| Tenon Medical | 1 | 0 | 3 | 0 | 2.50 |
OrthoPediatrics presently has a consensus price target of $24.00, suggesting a potential upside of 41.84%. Tenon Medical has a consensus price target of $5.50, suggesting a potential upside of 366.10%. Given Tenon Medical’s higher possible upside, analysts plainly believe Tenon Medical is more favorable than OrthoPediatrics.
Summary
OrthoPediatrics beats Tenon Medical on 9 of the 14 factors compared between the two stocks.
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.
About Tenon Medical
Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.
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