Comparing OPKO Health (NASDAQ:OPK) and OptiNose (NASDAQ:OPTN)

OptiNose (NASDAQ:OPTN) and OPKO Health (NASDAQ:OPK) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation & Earnings

This table compares OptiNose and OPKO Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptiNose	$70.99 million	1.64	-$35.48 million	($0.36)	-2.14
OPKO Health	$716.37 million	1.38	-$188.86 million	($0.35)	-4.06

OptiNose has higher earnings, but lower revenue than OPKO Health. OPKO Health is trading at a lower price-to-earnings ratio than OptiNose, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

85.6% of OptiNose shares are held by institutional investors. Comparatively, 64.6% of OPKO Health shares are held by institutional investors. 2.7% of OptiNose shares are held by insiders. Comparatively, 47.3% of OPKO Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

OptiNose has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for OptiNose and OPKO Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptiNose	0	0	2	0	3.00
OPKO Health	0	0	3	0	3.00

OptiNose presently has a consensus target price of $4.00, suggesting a potential upside of 418.54%. OPKO Health has a consensus target price of $2.75, suggesting a potential upside of 93.66%. Given OptiNose’s higher probable upside, research analysts plainly believe OptiNose is more favorable than OPKO Health.

Profitability

This table compares OptiNose and OPKO Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptiNose	-54.50%	N/A	-38.53%
OPKO Health	-33.79%	-17.67%	-12.07%

Summary

OPKO Health beats OptiNose on 7 of the 13 factors compared between the two stocks.

About OptiNose

OptiNose, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, throat, and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary exhalation delivery system (EDS) that delivers a topically acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps, as well as is in Phase IIIb clinical trial for treatment of chronic sinusitis; and Onzetra Xsail, a powder EDS device. It has a license agreement with Currax Pharmaceuticals LLC for the commercialization of Onzetra Xsail. The company was founded in 2000 and is headquartered in Yardley, Pennsylvania.

About OPKO Health

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.