ABIOMED (NASDAQ:ABMD) versus Orthofix Medical (NASDAQ:OFIX) Critical Survey
Orthofix Medical (NASDAQ:OFIX) and ABIOMED (NASDAQ:ABMD) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Institutional & Insider Ownership
94.6% of Orthofix Medical shares are held by institutional investors. Comparatively, 89.8% of ABIOMED shares are held by institutional investors. 5.8% of Orthofix Medical shares are held by insiders. Comparatively, 3.4% of ABIOMED shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings for Orthofix Medical and ABIOMED, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orthofix Medical currently has a consensus price target of $48.00, suggesting a potential upside of 10.45%. ABIOMED has a consensus price target of $248.33, suggesting a potential upside of 51.68%. Given ABIOMED’s stronger consensus rating and higher possible upside, analysts clearly believe ABIOMED is more favorable than Orthofix Medical.
Risk & Volatility
Orthofix Medical has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
This table compares Orthofix Medical and ABIOMED’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Orthofix Medical and ABIOMED’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orthofix Medical||$453.04 million||1.83||$13.81 million||$1.96||22.17|
|ABIOMED||$769.43 million||9.59||$259.02 million||$3.60||45.48|
ABIOMED has higher revenue and earnings than Orthofix Medical. Orthofix Medical is trading at a lower price-to-earnings ratio than ABIOMED, indicating that it is currently the more affordable of the two stocks.
ABIOMED beats Orthofix Medical on 12 of the 14 factors compared between the two stocks.
About Orthofix Medical
Orthofix Medical Inc., a medical device company, provides musculoskeletal healing products and therapies worldwide. It operates through four segments: Bone Growth Therapies, Spinal Implants, Biologics, and Orthofix Extremities. The Bone Growth Therapies segment manufactures, distributes, and provides support services for bone growth stimulator devices that enhance bone fusion and are indicated as treatment to enhance fusion success rates in cervical and lumbar spine, as well as a therapeutic treatment for non-spinal appendicular fractures. The Spinal Implants segment designs, develops, and markets a portfolio of implant products used in surgical procedures of the spine. The Biologics segment provides a portfolio of regenerative products and tissue forms that allow physicians to treat a range of spinal and orthopedic conditions. The Orthofix Extremities segment designs, develops, and markets orthopedic products used in fracture repair, deformity correction, and bone reconstruction procedures. The company markets and distributes its products through direct sales representatives; independent distributors; and employed and independent sales representatives to physicians, hospitals, ambulatory surgery centers, integrated health delivery systems, and other purchasing organizations. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in July 2018. Orthofix Medical Inc. was founded in 1987 and is headquartered in Lewisville, Texas.
ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.
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