Comparing Orthofix Medical (NASDAQ:OFIX) & LENSAR (NASDAQ:LNSR)

LENSAR (NASDAQ:LNSR) and Orthofix Medical (NASDAQ:OFIX) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for LENSAR and Orthofix Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LENSAR	1	0	2	0	2.33
Orthofix Medical	1	1	3	0	2.40

LENSAR currently has a consensus target price of $11.50, suggesting a potential upside of 66.18%. Orthofix Medical has a consensus target price of $14.75, suggesting a potential upside of 56.25%. Given LENSAR’s higher probable upside, analysts plainly believe LENSAR is more favorable than Orthofix Medical.

Insider & Institutional Ownership

40.2% of LENSAR shares are held by institutional investors. Comparatively, 89.8% of Orthofix Medical shares are held by institutional investors. 65.8% of LENSAR shares are held by company insiders. Comparatively, 2.7% of Orthofix Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

LENSAR has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Orthofix Medical has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares LENSAR and Orthofix Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LENSAR	$60.26 million	1.41	-$34.28 million	($0.33)	-20.97
Orthofix Medical	$833.19 million	0.46	-$92.19 million	($1.54)	-6.13

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

Profitability

This table compares LENSAR and Orthofix Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LENSAR	57.57%	-529.08%	50.03%
Orthofix Medical	-7.41%	-14.05%	-7.17%

Summary

LENSAR beats Orthofix Medical on 8 of the 14 factors compared between the two stocks.

About LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.