Comparing Orthofix Medical (NASDAQ:OFIX) and Alpha Tau Medical (NASDAQ:DRTS)

Alpha Tau Medical (NASDAQ:DRTS) and Orthofix Medical (NASDAQ:OFIX) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

2.7% of Alpha Tau Medical shares are held by institutional investors. Comparatively, 89.8% of Orthofix Medical shares are held by institutional investors. 39.5% of Alpha Tau Medical shares are held by company insiders. Comparatively, 2.6% of Orthofix Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Alpha Tau Medical 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
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.40)	-5.73
Orthofix Medical	$746.64 million	0.94	-$151.40 million	($3.19)	-5.77

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

Analyst Recommendations

This is a summary of current ratings for Alpha Tau Medical and Orthofix Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Tau Medical	0	0	3	0	3.00
Orthofix Medical	0	1	2	0	2.67

Alpha Tau Medical presently has a consensus target price of $8.00, suggesting a potential upside of 249.34%. Orthofix Medical has a consensus target price of $20.00, suggesting a potential upside of 8.70%. Given Alpha Tau Medical’s stronger consensus rating and higher probable upside, research analysts plainly believe Alpha Tau Medical is more favorable than Orthofix Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha Tau Medical	N/A	-33.75%	-26.78%
Orthofix Medical	-15.61%	-20.68%	-13.32%

Risk & Volatility

Alpha Tau Medical has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Orthofix Medical has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Summary

Alpha Tau Medical beats Orthofix Medical on 7 of the 12 factors compared between the two stocks.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

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.