Analyzing OrthoPediatrics (NASDAQ:KIDS) & Edwards Lifesciences (NYSE:EW)

OrthoPediatrics (NASDAQ:KIDS) and Edwards Lifesciences (NYSE:EW) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for OrthoPediatrics and Edwards Lifesciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OrthoPediatrics	1	1	8	1	2.82
Edwards Lifesciences	0	9	16	3	2.79

OrthoPediatrics currently has a consensus target price of $24.44, suggesting a potential upside of 42.37%. Edwards Lifesciences has a consensus target price of $95.65, suggesting a potential upside of 10.69%. Given OrthoPediatrics’ stronger consensus rating and higher probable upside, research analysts clearly believe OrthoPediatrics is more favorable than Edwards Lifesciences.

Institutional and Insider Ownership

69.1% of OrthoPediatrics shares are held by institutional investors. Comparatively, 79.5% of Edwards Lifesciences shares are held by institutional investors. 32.7% of OrthoPediatrics shares are held by company insiders. Comparatively, 0.3% of Edwards Lifesciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OrthoPediatrics	$236.35 million	1.87	-$39.65 million	($1.68)	-10.22
Edwards Lifesciences	$6.07 billion	8.20	$1.07 billion	$1.88	45.96

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

Volatility & Risk

OrthoPediatrics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares OrthoPediatrics and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OrthoPediatrics	-16.31%	-7.01%	-4.86%
Edwards Lifesciences	17.39%	15.19%	11.71%

Summary

Edwards Lifesciences beats OrthoPediatrics on 11 of the 15 factors compared between the two stocks.

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.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.