Head-To-Head Contrast: OrthoPediatrics (NASDAQ:KIDS) versus Alpha Tau Medical (NASDAQ:DRTS)

Alpha Tau Medical (NASDAQ:DRTS) and OrthoPediatrics (NASDAQ:KIDS) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares Alpha Tau Medical and OrthoPediatrics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Tau Medical	N/A	N/A	-$42.63 million	($0.67)	-18.20
OrthoPediatrics	$236.35 million	2.25	-$39.65 million	($1.68)	-12.33

OrthoPediatrics has higher revenue and earnings than Alpha Tau Medical. Alpha Tau Medical is trading at a lower price-to-earnings ratio than OrthoPediatrics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Alpha Tau Medical and OrthoPediatrics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Tau Medical	2	1	4	0	2.29
OrthoPediatrics	1	1	9	0	2.73

Alpha Tau Medical currently has a consensus target price of $12.60, indicating a potential upside of 3.34%. OrthoPediatrics has a consensus target price of $24.44, indicating a potential upside of 18.03%. Given OrthoPediatrics’ stronger consensus rating and higher probable upside, analysts plainly believe OrthoPediatrics is more favorable than Alpha Tau Medical.

Volatility & Risk

Alpha Tau Medical has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Alpha Tau Medical and OrthoPediatrics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Tau Medical	N/A	-73.23%	-52.90%
OrthoPediatrics	-16.31%	-7.01%	-4.86%

Institutional & Insider Ownership

2.7% of Alpha Tau Medical shares are owned by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are owned by institutional investors. 39.5% of Alpha Tau Medical shares are owned by insiders. Comparatively, 31.8% of OrthoPediatrics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

OrthoPediatrics beats Alpha Tau Medical on 9 of the 13 factors compared between the two stocks.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

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.