Reviewing K2M Group Holdings (KTWO) and Ocular Therapeutix (OCUL)
K2M Group Holdings (NASDAQ: KTWO) and Ocular Therapeutix (NASDAQ:OCUL) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This is a breakdown of recent recommendations for K2M Group Holdings and Ocular Therapeutix, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|K2M Group Holdings||0||0||6||0||3.00|
K2M Group Holdings presently has a consensus target price of $28.17, indicating a potential upside of 34.77%. Ocular Therapeutix has a consensus target price of $24.00, indicating a potential upside of 280.35%. Given Ocular Therapeutix’s higher probable upside, analysts clearly believe Ocular Therapeutix is more favorable than K2M Group Holdings.
Valuation & Earnings
This table compares K2M Group Holdings and Ocular Therapeutix’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|K2M Group Holdings||$248.68 million||3.64||-$2.00 million||($0.96)||-21.77|
|Ocular Therapeutix||$1.90 million||96.50||-$54.64 million||($2.13)||-2.96|
K2M Group Holdings has higher revenue and earnings than Ocular Therapeutix. K2M Group Holdings is trading at a lower price-to-earnings ratio than Ocular Therapeutix, indicating that it is currently the more affordable of the two stocks.
This table compares K2M Group Holdings and Ocular Therapeutix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|K2M Group Holdings||-16.21%||-15.45%||-10.50%|
Institutional and Insider Ownership
97.9% of K2M Group Holdings shares are owned by institutional investors. Comparatively, 53.4% of Ocular Therapeutix shares are owned by institutional investors. 5.8% of K2M Group Holdings shares are owned by company insiders. Comparatively, 26.1% of Ocular Therapeutix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
K2M Group Holdings has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
K2M Group Holdings beats Ocular Therapeutix on 9 of the 13 factors compared between the two stocks.
K2M Group Holdings Company Profile
K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.
Ocular Therapeutix Company Profile
Ocular Therapeutix, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapies for diseases and conditions of the eye using its hydrogel platform technology. The Company’s bioresorbable hydrogel based product candidates are designed to provide sustained delivery of therapeutic agents to the eye. Its lead product candidates are DEXTENZA (dexamethasone insert), for the treatment of post-surgical ocular inflammation and pain, allergic conjunctivitis and dry eye disease, and OTX-TP, for the treatment of glaucoma and ocular hypertension, which are extended-delivery, drug-eluting inserts that are placed into the canaliculus through a natural opening called the punctum located in the inner portion of the eyelid near the nose. It also has an intravitreal hydrogel depot, which is in preclinical development for the treatment of diseases and conditions of the back of the eye, including wet age-related macular degeneration (wet AMD).
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