Invacare (NYSE: IVC) and Orthofix International (NASDAQ:OFIX) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
This table compares Invacare and Orthofix International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Invacare pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Orthofix International does not pay a dividend. Invacare pays out -2.6% of its earnings in the form of a dividend.
Institutional & Insider Ownership
94.7% of Orthofix International shares are owned by institutional investors. 3.2% of Invacare shares are owned by insiders. Comparatively, 5.6% of Orthofix International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Invacare and Orthofix International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Invacare currently has a consensus target price of $16.50, indicating a potential downside of 1.20%. Orthofix International has a consensus target price of $56.90, indicating a potential upside of 0.05%. Given Orthofix International’s stronger consensus rating and higher probable upside, analysts clearly believe Orthofix International is more favorable than Invacare.
Valuation & Earnings
This table compares Invacare and Orthofix International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Invacare||$966.50 million||0.68||-$76.54 million||($1.93)||-8.65|
|Orthofix International||$433.82 million||2.41||$6.22 million||$1.62||35.10|
Orthofix International has lower revenue, but higher earnings than Invacare. Invacare is trading at a lower price-to-earnings ratio than Orthofix International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Invacare has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Orthofix International has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.
Orthofix International beats Invacare on 12 of the 16 factors compared between the two stocks.
Invacare Company Profile
Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company operates through four segments: North America/Home Medical Equipment, Institutional Products Group, Europe, and the Asia/Pacific. It offers mobility and seating products, such as power wheelchairs under the Invacare TDX brand; custom manual wheelchairs under the Invacare, Invacare Top End, and Küschall brand names; and seating and positioning products. The company also provides lifestyle products, including pressure relieving overlays and mattress replacement systems under the Invacare Softform and microAIR brands; safe resident handling products; residential care and home beds and bed accessories, and manual wheelchairs under the Invacare brand name; and personal care products. In addition, the company offers respiratory therapy products comprising stationary oxygen concentrators under the Perfecto2, Perfecto2 V, and Platinum brands; Invacare HomeFill oxygen systems; and Invacare SOLO2 and XPO2 transportable oxygen concentrators. Further, it sells and distributes healthcare furnishings consisting of long-term care beds, case goods, safe patient handling equipment, and other equipment and accessories for long-term care customers. It sells its products primarily to home medical equipment providers through retail and e-commerce channels, as well as to residential care operators, distributors, and government health service customers through its sales force, independent manufacturers' representatives, and distributors. Invacare Corporation was founded in 1885 and is headquartered in Elyria, Ohio.
Orthofix International Company Profile
Orthofix International N.V. (Orthofix) is a global medical device company. The Company is focused on providing reconstructive and regenerative orthopedic and spine solutions to physicians. The company operates in four segments: BioStim, Biologics, Extremity Fixation and Spine Fixation. Its BioStim solutions products include Cervical-Stim, Spinal-Stim and Physio-Stim. The Biologics products include AlloQuent Structural Allografts, Trinity ELITE, Trinity Evolution and VersaShield. The Extremity Fixation products include Fixator, Eight-Plate Guided Growth System and Contours VPS Volar Plating System III. The Spine Fixation products include Hallmark Anterior Cervical Plate System, Ascent LE Posterior Occipital Cervico-Thoracic (POCT) System, Firebird Deformity Correction System, Phoenix Minimally Invasive Spinal Fixation System, Samba-Screw System, LONESTAR Cervical Stand Alone (CSA), SKYHAWK Lateral Interbody Fusion System & Lateral Plate System and CENTURION POCT System.
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