Critical Review: Orchestra BioMed (OBIO) & Its Peers

Orchestra BioMed (NASDAQ:OBIO) is one of 227 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it weigh in compared to its rivals? We will compare Orchestra BioMed to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional & Insider Ownership

53.6% of Orchestra BioMed shares are held by institutional investors. Comparatively, 48.3% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 15.5% of shares of all “Surgical & medical instruments” companies 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.

Profitability

This table compares Orchestra BioMed and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orchestra BioMed	-1,779.71%	-58.32%	-41.47%
Orchestra BioMed Competitors	-742.89%	-148.37%	-29.58%

Analyst Recommendations

This is a summary of current ratings and target prices for Orchestra BioMed and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchestra BioMed	0	0	2	0	3.00
Orchestra BioMed Competitors	1501	4102	8150	219	2.51

Orchestra BioMed presently has a consensus price target of $17.00, suggesting a potential upside of 266.38%. As a group, “Surgical & medical instruments” companies have a potential upside of 31.19%. Given Orchestra BioMed’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Orchestra BioMed is more favorable than its rivals.

Risk & Volatility

Orchestra BioMed has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Orchestra BioMed’s rivals have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares Orchestra BioMed and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Orchestra BioMed	$2.76 million	-$49.12 million	-3.09
Orchestra BioMed Competitors	$1.06 billion	$3.29 million	-8.29

Orchestra BioMed’s rivals have higher revenue and earnings than Orchestra BioMed. Orchestra BioMed is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Orchestra BioMed rivals beat Orchestra BioMed on 7 of the 13 factors compared.

Orchestra BioMed Company Profile

Orchestra BioMed Holdings, Inc. operates as a biomedical innovation company. The company's flagship product candidates include BackBeat Cardiac Neuromodulation Therapy (CNT) for the treatment of hypertension (HTN); and Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of atherosclerotic artery disease. Its products also comprise FreeHold devices and minimally invasive surgery devices. The company has a collaboration agreement with Medtronic, Inc. for the development and commercialization of BackBeat CNT for the treatment of HTN in patients indicated for a cardiac pacemaker; and a strategic collaboration with Terumo Medical Corporation for the development and commercialization of Virtue SAB for the treatment of coronary and peripheral artery disease. Orchestra BioMed Holdings, Inc. is based in New Hope, Pennsylvania.