Head to Head Analysis: OrthoPediatrics (NASDAQ:KIDS) and Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and OrthoPediatrics (NASDAQ:KIDS) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Spectral AI and OrthoPediatrics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	3	1	3.25
OrthoPediatrics	0	1	2	0	2.67

Spectral AI currently has a consensus price target of $4.50, indicating a potential upside of 210.34%. OrthoPediatrics has a consensus price target of $40.00, indicating a potential upside of 54.38%. Given Spectral AI’s stronger consensus rating and higher possible upside, analysts clearly believe Spectral AI is more favorable than OrthoPediatrics.

Volatility & Risk

Spectral AI has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Spectral AI and OrthoPediatrics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$27.26 million	0.99	-$20.85 million	($0.65)	-2.23
OrthoPediatrics	$189.67 million	3.31	-$20.97 million	($1.23)	-21.07

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

Profitability

This table compares Spectral AI and OrthoPediatrics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-40.78%	N/A	-77.87%
OrthoPediatrics	-15.00%	-5.78%	-4.80%

Insider & Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 56.7% of Spectral AI shares are held by company insiders. Comparatively, 31.8% of OrthoPediatrics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Spectral AI beats OrthoPediatrics on 9 of the 15 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

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.