Spectral AI (NASDAQ:MDAI) vs. OrthoPediatrics (NASDAQ:KIDS) Financial Analysis

OrthoPediatrics (NASDAQ:KIDS) and Spectral AI (NASDAQ:MDAI) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Analyst Ratings

This is a summary of recent ratings for OrthoPediatrics and Spectral AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OrthoPediatrics	0	1	2	0	2.67
Spectral AI	0	0	3	1	3.25

OrthoPediatrics presently has a consensus price target of $40.00, suggesting a potential upside of 56.86%. Spectral AI has a consensus price target of $4.50, suggesting a potential upside of 324.53%. Given Spectral AI’s stronger consensus rating and higher probable upside, analysts plainly believe Spectral AI is more favorable than OrthoPediatrics.

Volatility and Risk

OrthoPediatrics has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Spectral AI has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Profitability

This table compares OrthoPediatrics and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OrthoPediatrics	-15.00%	-5.78%	-4.80%
Spectral AI	-40.78%	N/A	-77.87%

Insider & Institutional Ownership

69.1% of OrthoPediatrics shares are held by institutional investors. Comparatively, 67.1% of Spectral AI shares are held by institutional investors. 31.8% of OrthoPediatrics shares are held by company insiders. Comparatively, 56.7% of Spectral AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares OrthoPediatrics and Spectral AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OrthoPediatrics	$148.73 million	4.15	-$20.97 million	($1.23)	-20.73
Spectral AI	$18.06 million	1.09	-$20.85 million	($0.65)	-1.63

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

Summary

Spectral AI beats OrthoPediatrics on 9 of the 15 factors compared between the two stocks.

About OrthoPediatrics

OrthoPediatrics Corp., a medical device company, engages in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the United States and internationally. The company offers pediatric trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, The Fassier-Duval Telescopic Intramedullary System, SLIMTM Nail, The GAP Nail, The Free Gliding SCFE Screw System, GIROTM Growth Modulation System, PNP Tibia System, ApiFix Mid-C System, and Mitchell Ponseti. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.