OrthoPediatrics Corp. (KIDS) vs VAREX IMAGING (VREX)

OrthoPediatrics Corp. and VAREX IMAGING are both Medical Devices companies. OrthoPediatrics Corp. and VAREX IMAGING are of similar size ($841.3M and $783.0M). OrthoPediatrics Corp. has negative trailing earnings, so its P/E is not meaningful; VAREX IMAGING trades at 34.8×. OrthoPediatrics Corp. grew revenue faster over the last twelve months: 16.2% against 5.31%. VAREX IMAGING has the higher net margin (2.55% vs −12.8%) and the higher return on invested capital (5.95% vs −3.95%). Across the 19 metrics below, VAREX IMAGING leads on 10 and OrthoPediatrics Corp. on 9.

Valuation

Metric KIDS VREX Medical Devices median
P/E n/m 34.81 25.58
P/S 2.94 0.90 2.54
P/B 2.29 1.52 2.48
Price to free cash flow 722.82 n/m 28.81
EV/EBITDA 1,023.73 10.15 11.51
EV/Sales 3.14 1.18 2.72
Earnings yield (4.44%) 2.87% (12.82%)
Free cash flow yield 0.14% (2.60%) (8.18%)

Profitability

Metric KIDS VREX Medical Devices median
Gross margin 73.76% 34.32% 57.76%
Operating margin (9.39%) 8.35% (15.07%)
Net margin (12.83%) 2.55% (14.45%)
Free cash flow margin 1.20% (2.34%) (3.88%)
Return on equity (9.84%) 4.51% (10.35%)
Return on assets (6.76%) 2.03% (17.26%)
Return on invested capital (3.95%) 5.95% (5.27%)

Growth

Metric KIDS VREX Medical Devices median
Revenue growth (TTM) 16.15% 5.31% 10.41%
EPS growth (last fiscal year) (3.05%) (45.30%) 28.17%
Revenue growth, 5-year CAGR 27.16% 2.73% 15.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KIDS VREX Medical Devices median
Debt to equity 0.29 0.68 0.04
Current ratio 4.55 3.38 2.74
Net debt to EBITDA (2.95) 2.21 0.54

Dividend

Metric KIDS VREX Medical Devices median
Dividend yield — — 1.02%
Payout ratio — — 0.37

Size

Metric KIDS VREX Medical Devices median
Market cap 841.28m 783.03m 239.53m

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