Reviewing OrthoPediatrics (NASDAQ:KIDS) & MariMed (OTCMKTS:MRMD)

MariMed (OTCMKTS:MRMD) and OrthoPediatrics (NASDAQ:KIDS) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Risk and Volatility

MariMed has a beta of 1.39, meaning that its share price is 39% 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 MariMed and OrthoPediatrics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MariMed	-9.13%	-10.71%	-2.58%
OrthoPediatrics	-15.72%	-8.10%	-5.54%

Insider and Institutional Ownership

0.2% of MariMed shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 16.1% of MariMed shares are held by company insiders. Comparatively, 32.5% of OrthoPediatrics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for MariMed and OrthoPediatrics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MariMed	0	2	0	0	2.00
OrthoPediatrics	1	1	7	0	2.67

OrthoPediatrics has a consensus price target of $30.75, indicating a potential downside of 4.10%. Given OrthoPediatrics’ stronger consensus rating and higher possible upside, analysts clearly believe OrthoPediatrics is more favorable than MariMed.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MariMed	$159.83 million	0.13	-$14.48 million	($0.04)	-1.29
OrthoPediatrics	$236.35 million	3.54	-$39.65 million	($1.68)	-19.09

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

Summary

OrthoPediatrics beats MariMed on 8 of the 14 factors compared between the two stocks.

About MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature’s Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby’s Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty’s Eddies brand and ice creams under Emack & Bolio’s brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.

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.