Orchestra BioMed (NASDAQ:OBIO) and Fractyl Health (NASDAQ:GUTS) Critical Contrast

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

Valuation and Earnings

This table compares Orchestra BioMed and Fractyl Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchestra BioMed	$2.76 million	79.77	-$49.12 million	($1.48)	-3.93
Fractyl Health	$120,000.00	1,114.37	-$77.09 million	N/A	N/A

Orchestra BioMed has higher revenue and earnings than Fractyl Health.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Orchestra BioMed and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchestra BioMed	0	0	4	0	3.00
Fractyl Health	0	0	3	0	3.00

Orchestra BioMed presently has a consensus target price of $15.75, indicating a potential upside of 170.62%. Fractyl Health has a consensus target price of $22.00, indicating a potential upside of 688.53%. Given Fractyl Health’s higher probable upside, analysts plainly believe Fractyl Health is more favorable than Orchestra BioMed.

Profitability

This table compares Orchestra BioMed and Fractyl Health’s 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%
Fractyl Health	N/A	N/A	N/A

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 Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.