OrthoPediatrics Corp. (KIDS) vs Tactile Systems Technology, Inc. (TCMD)

OrthoPediatrics Corp. and Tactile Systems Technology, Inc. are both Medical Devices companies. OrthoPediatrics Corp. is the larger, with a market value of $591.1M against $518.5M — 1.1× the size. OrthoPediatrics Corp. has negative trailing earnings, so its P/E is not meaningful; Tactile Systems Technology, Inc. trades at 20.7×. Tactile Systems Technology, Inc. grew revenue faster over the last twelve months: 17.2% against 14.5%. Tactile Systems Technology, Inc. has the higher net margin (7.10% vs −15.7%) and the higher return on invested capital (15.7% vs −4.77%). Across the 18 metrics below, Tactile Systems Technology, Inc. leads on 14 and OrthoPediatrics Corp. on 4.

Valuation

Metric KIDS TCMD Medical Devices median
P/E n/m 20.66 22.18
P/S 2.15 1.47 2.70
P/B 1.58 2.30 2.46
Price to free cash flow n/m 19.33 22.53
EV/EBITDA n/m 10.84 11.78
EV/Sales 2.34 1.29 2.38
Earnings yield (7.45%) 4.84% (8.22%)
Free cash flow yield (0.73%) 5.17% (7.80%)

Profitability

Metric KIDS TCMD Medical Devices median
Gross margin 73.65% 76.78% 56.01%
Operating margin (11.87%) 10.00% (15.03%)
Net margin (15.72%) 7.10% (20.40%)
Free cash flow margin (0.73%) 7.61% (7.24%)
Return on equity (11.36%) 11.88% (15.32%)
Return on assets (7.83%) 9.00% (19.72%)
Return on invested capital (4.77%) 15.74% (10.33%)

Growth

Metric KIDS TCMD Medical Devices median
Revenue growth (TTM) 14.49% 17.22% 8.80%
EPS growth (last fiscal year) (3.05%) 17.14% —
Revenue growth, 5-year CAGR 27.16% 11.98% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KIDS TCMD Medical Devices median
Debt to equity 0.28 0.00 0.07
Current ratio 4.78 4.12 2.50
Net debt to EBITDA (2.95) (2.76) 0.49

Dividend

Metric KIDS TCMD Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric KIDS TCMD Medical Devices median
Market cap 591.13m 518.51m 172.91m

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