Head to Head Review: LENSAR (NASDAQ:LNSR) and Orthofix Medical (NASDAQ:OFIX)

Orthofix Medical (NASDAQ:OFIX) and LENSAR (NASDAQ:LNSR) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Orthofix Medical and LENSAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orthofix Medical	-7.41%	-14.05%	-7.17%
LENSAR	57.57%	-529.08%	50.03%

Valuation and Earnings

This table compares Orthofix Medical and LENSAR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orthofix Medical	$822.31 million	0.43	-$92.19 million	($1.54)	-5.66
LENSAR	$58.44 million	1.49	-$34.28 million	($0.33)	-21.42

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

Risk & Volatility

Orthofix Medical has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Orthofix Medical and LENSAR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orthofix Medical	1	1	3	0	2.40
LENSAR	1	0	2	0	2.33

Orthofix Medical currently has a consensus price target of $14.75, indicating a potential upside of 69.35%. LENSAR has a consensus price target of $11.50, indicating a potential upside of 62.66%. Given Orthofix Medical’s stronger consensus rating and higher possible upside, equities analysts clearly believe Orthofix Medical is more favorable than LENSAR.

Institutional and Insider Ownership

89.8% of Orthofix Medical shares are held by institutional investors. Comparatively, 40.1% of LENSAR shares are held by institutional investors. 2.7% of Orthofix Medical shares are held by company insiders. Comparatively, 65.8% of LENSAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

About LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.