Contrasting Orchestra BioMed (NASDAQ:OBIO) and Medtronic (NYSE:MDT)

Medtronic (NYSE:MDT) and Orchestra BioMed (NASDAQ:OBIO) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

82.1% of Medtronic shares are owned by institutional investors. Comparatively, 53.2% of Orchestra BioMed shares are owned by institutional investors. 0.3% of Medtronic shares are owned by insiders. Comparatively, 7.5% of Orchestra BioMed shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Medtronic has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Orchestra BioMed has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Medtronic and Orchestra BioMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medtronic	0	9	19	0	2.68
Orchestra BioMed	1	0	6	0	2.71

Medtronic currently has a consensus target price of $103.92, suggesting a potential upside of 16.19%. Orchestra BioMed has a consensus target price of $13.17, suggesting a potential upside of 123.54%. Given Orchestra BioMed’s stronger consensus rating and higher probable upside, analysts clearly believe Orchestra BioMed is more favorable than Medtronic.

Profitability

This table compares Medtronic and Orchestra BioMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medtronic	13.93%	14.78%	7.97%
Orchestra BioMed	-184.60%	-149.61%	-54.15%

Valuation and Earnings

This table compares Medtronic and Orchestra BioMed”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medtronic	$36.36 billion	3.15	$4.80 billion	$4.06	22.03
Orchestra BioMed	$33.48 million	10.57	-$52.70 million	($0.85)	-6.93

Medtronic has higher revenue and earnings than Orchestra BioMed. Orchestra BioMed is trading at a lower price-to-earnings ratio than Medtronic, indicating that it is currently the more affordable of the two stocks.

Summary

Medtronic beats Orchestra BioMed on 10 of the 14 factors compared between the two stocks.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

About Orchestra BioMed

Orchestra BioMed Holdings, Inc. operates as a biomedical innovation company. The company’s flagship product candidates include BackBeat Cardiac Neuromodulation Therapy (CNT) for the treatment of hypertension (HTN); and Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of atherosclerotic artery disease. Its products also comprise FreeHold devices and minimally invasive surgery devices. The company has a collaboration agreement with Medtronic, Inc. for the development and commercialization of BackBeat CNT for the treatment of HTN in patients indicated for a cardiac pacemaker; and a strategic collaboration with Terumo Medical Corporation for the development and commercialization of Virtue SAB for the treatment of coronary and peripheral artery disease. Orchestra BioMed Holdings, Inc. is based in New Hope, Pennsylvania.