Financial Analysis: Orthofix International (OFIX) & Alliqua Biomedical (ALQA)

Orthofix International (NASDAQ: OFIX) and Alliqua Biomedical (NASDAQ:ALQA) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

99.8% of Orthofix International shares are owned by institutional investors. 5.6% of Orthofix International shares are owned by company insiders. Comparatively, 15.8% of Alliqua Biomedical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Orthofix International and Alliqua Biomedical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orthofix International 0 0 5 0 3.00
Alliqua Biomedical 0 1 2 0 2.67

Orthofix International presently has a consensus target price of $53.30, indicating a potential downside of 1.17%. Alliqua Biomedical has a consensus target price of $10.10, indicating a potential upside of 483.82%. Given Alliqua Biomedical’s higher probable upside, analysts clearly believe Alliqua Biomedical is more favorable than Orthofix International.

Earnings & Valuation

This table compares Orthofix International and Alliqua Biomedical’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orthofix International $409.79 million 2.40 $3.05 million $0.02 2,696.50
Alliqua Biomedical $18.24 million 0.47 -$28.24 million ($9.63) -0.18

Orthofix International has higher revenue and earnings than Alliqua Biomedical. Alliqua Biomedical 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 & Volatility

Orthofix International has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Alliqua Biomedical has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Profitability

This table compares Orthofix International and Alliqua Biomedical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orthofix International 0.33% 10.26% 7.57%
Alliqua Biomedical -155.55% -110.42% -65.28%

Summary

Orthofix International beats Alliqua Biomedical on 11 of the 14 factors compared between the two stocks.

About Orthofix International

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.

About Alliqua Biomedical

Alliqua BioMedical, Inc. is a provider of advanced wound care solutions. The Company’s businesses include advanced wound care and contract manufacturing. The Company operates through its subsidiaries, such as AquaMed Technologies, Inc. and Choice Therapeutics, Inc. The Company is engaged in developing a suite of advanced wound care solutions that will enable surgeons, clinicians and wound care practitioners to address the challenges in chronic and acute wounds. The Company utilizes hydrogel technology through which hydrogels are manufactured by introducing a hydrophilic polymer into water to create a feed mix. The Company’s commercial wound care portfolio consists of over four product categories, such as Human Biologics; Antimicrobial Protection; Exudate Management and Contract Manufacturing. Human Biologics include BIOVANCE and Extracellular Matrix (ECM). Under Antimicrobial Protection, the Company offers SilverSeal.

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