OrthoPediatrics (NASDAQ:KIDS – Get Free Report) and Modular Medical (NASDAQ:MODD – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Profitability
This table compares OrthoPediatrics and Modular Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OrthoPediatrics | -14.10% | -5.03% | -4.37% |
| Modular Medical | N/A | -235.93% | -180.37% |
Institutional and Insider Ownership
69.1% of OrthoPediatrics shares are owned by institutional investors. Comparatively, 27.5% of Modular Medical shares are owned by institutional investors. 31.8% of OrthoPediatrics shares are owned by company insiders. Comparatively, 32.3% of Modular Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OrthoPediatrics | $148.73 million | 4.99 | -$20.97 million | ($0.92) | -33.91 |
| Modular Medical | N/A | N/A | -$13.88 million | ($0.97) | -1.63 |
Modular Medical has lower revenue, but higher earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Modular Medical, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for OrthoPediatrics and Modular Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OrthoPediatrics | 0 | 1 | 3 | 0 | 2.75 |
| Modular Medical | 0 | 0 | 2 | 0 | 3.00 |
OrthoPediatrics presently has a consensus target price of $42.50, suggesting a potential upside of 36.22%. Modular Medical has a consensus target price of $4.25, suggesting a potential upside of 168.99%. Given Modular Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Modular Medical is more favorable than OrthoPediatrics.
Risk & Volatility
OrthoPediatrics has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Modular Medical has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.
Summary
OrthoPediatrics beats Modular Medical on 7 of the 12 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 Modular Medical
Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.
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