ShockWave Medical (NASDAQ:SWAV – Get Rating) and OrthoPediatrics (NASDAQ:KIDS – Get Rating) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for ShockWave Medical and OrthoPediatrics, as provided by MarketBeat.com.
Get ShockWave Medical alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ShockWave Medical | 1 | 1 | 6 | 0 | 2.63 |
| OrthoPediatrics | 0 | 0 | 4 | 0 | 3.00 |
ShockWave Medical presently has a consensus target price of $244.86, indicating a potential downside of 15.59%. OrthoPediatrics has a consensus target price of $62.50, indicating a potential upside of 28.23%. Given OrthoPediatrics' stronger consensus rating and higher possible upside, analysts clearly believe OrthoPediatrics is more favorable than ShockWave Medical.
Profitability
This table compares ShockWave Medical and OrthoPediatrics' net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| ShockWave Medical | 15.11% | 21.25% | 15.33% |
| OrthoPediatrics | -10.88% | -7.49% | -5.37% |
Insider & Institutional Ownership
95.4% of ShockWave Medical shares are held by institutional investors. 3.9% of ShockWave Medical shares are held by company insiders. Comparatively, 29.5% of OrthoPediatrics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares ShockWave Medical and OrthoPediatrics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ShockWave Medical | $237.15 million | 43.78 | -$9.14 million | $1.46 | 198.68 |
| OrthoPediatrics | $98.05 million | 10.60 | -$16.26 million | ($0.60) | -81.23 |
ShockWave Medical has higher revenue and earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than ShockWave Medical, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ShockWave Medical has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Summary
ShockWave Medical beats OrthoPediatrics on 11 of the 14 factors compared between the two stocks.
About ShockWave Medical
(Get Rating)
ShockWave Medical, Inc., a medical device company, engages in developing and commercializing intravascular lithotripsy technology for the treatment of calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases worldwide. The company offers M5 catheters for treating above-the-knee peripheral artery disease (PAD); C2 catheters for treating coronary artery disease; and S4 catheters for treating below-the-knee PAD. It serves interventional cardiologists, vascular surgeons, and interventional radiologists through sales representatives and sales managers, and distributors. The company was incorporated in 2009 and is headquartered in Santa Clara, California.
About OrthoPediatrics
(Get Rating)
OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. The company offers 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, anterior cruciate ligament reconstruction systems, locking cannulated blades, locking proximal femurs, Spica Tables, RESPONSE Spine systems, Bandloc, Pediguard, Pediatric Nailing Platform, Femur system, Orthex, QuickPack, and ApiFix Mid-C system. 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.
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