LENSAR (NASDAQ:LNSR) versus Orthofix Medical (NASDAQ:OFIX) Head-To-Head Review
by Kim Johansen · The Markets DailyOrthofix Medical (NASDAQ:OFIX – Get Free Report) and LENSAR (NASDAQ:LNSR – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
89.8% of Orthofix Medical shares are owned by institutional investors. Comparatively, 40.1% of LENSAR shares are owned by institutional investors. 2.7% of Orthofix Medical shares are owned by insiders. Comparatively, 65.8% of LENSAR shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Orthofix Medical and LENSAR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orthofix Medical | -7.41% | -14.05% | -7.17% |
| LENSAR | 57.57% | -529.08% | 50.03% |
Earnings and Valuation
This table compares Orthofix Medical and LENSAR”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orthofix Medical | $822.31 million | 0.43 | -$92.19 million | ($1.54) | -5.66 |
| LENSAR | $58.44 million | 1.49 | -$34.28 million | ($0.33) | -21.42 |
LENSAR has lower revenue, but higher earnings 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.
Risk and Volatility
Orthofix Medical has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Orthofix Medical and LENSAR, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orthofix Medical | 1 | 1 | 3 | 0 | 2.40 |
| LENSAR | 1 | 0 | 2 | 0 | 2.33 |
Orthofix Medical currently has a consensus price target of $14.75, suggesting a potential upside of 69.35%. LENSAR has a consensus price target of $11.50, suggesting a potential upside of 62.66%. Given Orthofix Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Orthofix Medical is more favorable than LENSAR.
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.
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.