Analyzing OPKO Health (NASDAQ:OPK) & Integra LifeSciences (NASDAQ:IART)

Integra LifeSciences (NASDAQ:IART) and OPKO Health (NASDAQ:OPK) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Integra LifeSciences and OPKO Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integra LifeSciences	3	2	2	0	1.86
OPKO Health	1	3	2	1	2.43

Integra LifeSciences presently has a consensus target price of $15.00, indicating a potential upside of 27.55%. OPKO Health has a consensus target price of $2.28, indicating a potential upside of 98.55%. Given OPKO Health’s stronger consensus rating and higher possible upside, analysts clearly believe OPKO Health is more favorable than Integra LifeSciences.

Volatility and Risk

Integra LifeSciences has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

84.8% of Integra LifeSciences shares are owned by institutional investors. Comparatively, 64.6% of OPKO Health shares are owned by institutional investors. 3.5% of Integra LifeSciences shares are owned by company insiders. Comparatively, 49.7% of OPKO Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Integra LifeSciences and OPKO Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integra LifeSciences	$1.61 billion	0.57	-$6.94 million	($6.46)	-1.82
OPKO Health	$713.10 million	1.24	-$53.22 million	($0.25)	-4.60

Integra LifeSciences has higher revenue and earnings than OPKO Health. OPKO Health is trading at a lower price-to-earnings ratio than Integra LifeSciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Integra LifeSciences and OPKO Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integra LifeSciences	-30.15%	14.06%	4.70%
OPKO Health	-28.10%	-13.67%	-8.70%

Summary

OPKO Health beats Integra LifeSciences on 8 of the 14 factors compared between the two stocks.

About Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.

About OPKO Health

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.