Modular Medical (NASDAQ:MODD – Get Free Report) and OrthoPediatrics (NASDAQ:KIDS – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Modular Medical and OrthoPediatrics’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modular Medical | N/A | N/A | -$13.88 million | ($0.97) | -1.63 |
| OrthoPediatrics | $148.73 million | 4.99 | -$20.97 million | ($0.92) | -33.91 |
Modular Medical has higher earnings, but lower revenue than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Modular Medical, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modular Medical | 0 | 0 | 2 | 0 | 3.00 |
| OrthoPediatrics | 0 | 1 | 3 | 0 | 2.75 |
Modular Medical currently has a consensus price target of $4.25, suggesting a potential upside of 168.99%. OrthoPediatrics has a consensus price target of $42.50, suggesting a potential upside of 36.22%. Given Modular Medical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Modular Medical is more favorable than OrthoPediatrics.
Institutional and Insider Ownership
27.5% of Modular Medical shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 32.3% of Modular Medical shares are held by insiders. Comparatively, 31.8% of OrthoPediatrics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Modular Medical and OrthoPediatrics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modular Medical | N/A | -235.93% | -180.37% |
| OrthoPediatrics | -14.10% | -5.03% | -4.37% |
Volatility & Risk
Modular Medical has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Summary
OrthoPediatrics beats Modular Medical on 7 of the 12 factors compared between the two stocks.
About Modular Medical
Modular Medical, Inc. operates as a development stage medical device company. It focuses on the design, development, and commercialization of insulin pumps. It offers MODD1, a two-part patch pump for diabetes. The company was founded in 1998 and is headquartered in San Diego, California.
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.
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