Orchestra BioMed (NASDAQ:OBIO) versus Nephros (NASDAQ:NEPH) Head-To-Head Contrast

Orchestra BioMed (NASDAQ:OBIO) and Nephros (NASDAQ:NEPH) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

53.6% of Orchestra BioMed shares are owned by institutional investors. Comparatively, 41.1% of Nephros shares are owned by institutional investors. 6.7% of Orchestra BioMed shares are owned by insiders. Comparatively, 4.1% of Nephros shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orchestra BioMed	-2,330.46%	-70.18%	-49.17%
Nephros	-10.23%	-17.01%	-12.90%

Earnings and Valuation

This table compares Orchestra BioMed and Nephros’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchestra BioMed	$2.76 million	105.42	-$49.12 million	($1.48)	-5.49
Nephros	$14.24 million	1.69	-$1.58 million	($0.14)	-16.36

Nephros has higher revenue and earnings than Orchestra BioMed. Nephros is trading at a lower price-to-earnings ratio than Orchestra BioMed, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Orchestra BioMed and Nephros, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchestra BioMed	0	0	2	0	3.00
Nephros	0	0	1	0	3.00

Orchestra BioMed currently has a consensus price target of $17.00, indicating a potential upside of 109.10%. Nephros has a consensus price target of $5.00, indicating a potential upside of 118.34%. Given Nephros’ higher possible upside, analysts plainly believe Nephros is more favorable than Orchestra BioMed.

Risk and Volatility

Orchestra BioMed has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Nephros has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Summary

Nephros beats Orchestra BioMed on 8 of the 13 factors compared between the two stocks.

About Orchestra BioMed

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.

About Nephros

Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.