OrthoPediatrics (NASDAQ:KIDS) and Westaim (OTCMKTS:WEDXF) Financial Contrast

OrthoPediatrics (NASDAQ:KIDS) and Westaim (OTCMKTS:WEDXF) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares OrthoPediatrics and Westaim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OrthoPediatrics	-15.00%	-5.78%	-4.80%
Westaim	284.74%	7.76%	7.29%

Earnings & Valuation

This table compares OrthoPediatrics and Westaim”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OrthoPediatrics	$204.73 million	3.01	-$20.97 million	($1.63)	-15.55
Westaim	$8.63 million	55.08	$183.98 million	$1.74	12.79

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

Institutional and Insider Ownership

69.1% of OrthoPediatrics shares are owned by institutional investors. 31.8% of OrthoPediatrics shares are owned by company insiders. Comparatively, 4.2% of Westaim shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

OrthoPediatrics has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Westaim has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for OrthoPediatrics and Westaim, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OrthoPediatrics	0	1	3	0	2.75
Westaim	0	0	0	0	0.00

OrthoPediatrics presently has a consensus target price of $37.25, indicating a potential upside of 46.94%. Given OrthoPediatrics’ stronger consensus rating and higher probable upside, equities analysts plainly believe OrthoPediatrics is more favorable than Westaim.

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 Westaim

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.