Critical Analysis: Orchestra BioMed (OBIO) & Its Peers

Orchestra BioMed (NASDAQ:OBIO) is one of 227 public companies in the “Surgical & medical instruments” industry, but how does it weigh in compared to its competitors? We will compare Orchestra BioMed to similar companies based on the strength of its valuation, dividends, profitability, analyst recommendations, institutional ownership, risk and earnings.

Earnings and Valuation

This table compares Orchestra BioMed and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Orchestra BioMed	$2.76 million	-$49.12 million	-3.17
Orchestra BioMed Competitors	$1.06 billion	$4.84 million	-8.07

Orchestra BioMed’s competitors have higher revenue and earnings than Orchestra BioMed. Orchestra BioMed is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Orchestra BioMed and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orchestra BioMed	-1,779.71%	-58.32%	-41.47%
Orchestra BioMed Competitors	-742.46%	-147.54%	-29.28%

Institutional and Insider Ownership

53.6% of Orchestra BioMed shares are held by institutional investors. Comparatively, 48.3% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 15.7% of shares of all “Surgical & medical instruments” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Orchestra BioMed has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Orchestra BioMed’s competitors have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Orchestra BioMed and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchestra BioMed	0	0	2	0	3.00
Orchestra BioMed Competitors	1581	4275	8360	220	2.50

Orchestra BioMed presently has a consensus target price of $17.00, suggesting a potential upside of 257.89%. As a group, “Surgical & medical instruments” companies have a potential upside of 28.87%. Given Orchestra BioMed’s stronger consensus rating and higher probable upside, analysts plainly believe Orchestra BioMed is more favorable than its competitors.

Summary

Orchestra BioMed competitors beat Orchestra BioMed on 7 of the 12 factors compared.

Orchestra BioMed Company Profile

Orchestra BioMed Holdings, Inc. operates as a biomedical innovation company. The company's flagship product candidates include BackBeat Cardiac Neuromodulation Therapy (CNT) for the treatment of hypertension (HTN); and Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of atherosclerotic artery disease. Its products also comprise FreeHold devices and minimally invasive surgery devices. The company has a collaboration agreement with Medtronic, Inc. for the development and commercialization of BackBeat CNT for the treatment of HTN in patients indicated for a cardiac pacemaker; and a strategic collaboration with Terumo Medical Corporation for the development and commercialization of Virtue SAB for the treatment of coronary and peripheral artery disease. Orchestra BioMed Holdings, Inc. is based in New Hope, Pennsylvania.