LifeMD (NASDAQ:LFMD) and OPKO Health (NASDAQ:OPK) Critical Analysis

LifeMD (NASDAQ:LFMD) and OPKO Health (NASDAQ:OPK) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LifeMD and OPKO Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeMD	1	1	8	0	2.70
OPKO Health	1	1	4	1	2.71

LifeMD presently has a consensus target price of $7.57, indicating a potential upside of 209.04%. OPKO Health has a consensus target price of $3.42, indicating a potential upside of 93.03%. Given LifeMD’s higher probable upside, equities research analysts clearly believe LifeMD is more favorable than OPKO Health.

Volatility & Risk

LifeMD has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Valuation and Earnings

This table compares LifeMD and OPKO Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeMD	$194.05 million	0.61	$14.35 million	($0.05)	-49.00
OPKO Health	$587.90 million	2.25	-$225.68 million	($0.09)	-19.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LifeMD	0.10%	-168.23%	-31.27%
OPKO Health	-12.40%	-5.88%	-3.83%

Institutional & Insider Ownership

35.5% of LifeMD shares are owned by institutional investors. Comparatively, 64.6% of OPKO Health shares are owned by institutional investors. 17.2% of LifeMD shares are owned by company insiders. Comparatively, 44.7% of OPKO Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

OPKO Health beats LifeMD on 9 of the 15 factors compared between the two stocks.

About LifeMD

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.

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.