Orchestra BioMed (NASDAQ:OBIO) versus iRhythm Technologies (NASDAQ:IRTC) Financial Analysis

Orchestra BioMed (NASDAQ:OBIO) and iRhythm Technologies (NASDAQ:IRTC) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Orchestra BioMed and iRhythm Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchestra BioMed	0	0	4	0	3.00
iRhythm Technologies	0	0	9	0	3.00

Orchestra BioMed presently has a consensus price target of $15.75, suggesting a potential upside of 233.69%. iRhythm Technologies has a consensus price target of $118.67, suggesting a potential upside of 65.94%. Given Orchestra BioMed’s higher possible upside, analysts clearly believe Orchestra BioMed is more favorable than iRhythm Technologies.

Insider & Institutional Ownership

53.5% of Orchestra BioMed shares are owned by institutional investors. 6.7% of Orchestra BioMed shares are owned by company insiders. Comparatively, 0.7% of iRhythm Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Orchestra BioMed has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orchestra BioMed	-2,673.26%	-89.28%	-60.64%
iRhythm Technologies	-24.50%	-84.14%	-19.29%

Valuation and Earnings

This table compares Orchestra BioMed and iRhythm Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchestra BioMed	$2.08 million	81.25	-$49.12 million	($1.48)	-3.19
iRhythm Technologies	$537.09 million	4.14	-$123.41 million	($4.23)	-16.91

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

Summary

Orchestra BioMed beats iRhythm Technologies on 7 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 iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.