Head to Head Comparison: Westaim (OTCMKTS:WEDXF) versus Orchestra BioMed (NASDAQ:OBIO)

Westaim (OTCMKTS:WEDXF) and Orchestra BioMed (NASDAQ:OBIO) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

Westaim has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Orchestra BioMed has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Institutional and Insider Ownership

53.6% of Orchestra BioMed shares are owned by institutional investors. 4.2% of Westaim shares are owned by company insiders. Comparatively, 6.7% of Orchestra BioMed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westaim	1,323.83%	22.34%	20.94%
Orchestra BioMed	-2,330.46%	-70.18%	-49.17%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Westaim and Orchestra BioMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westaim	0	0	0	0	N/A
Orchestra BioMed	0	0	2	0	3.00

Orchestra BioMed has a consensus price target of $17.00, indicating a potential upside of 114.38%. Given Orchestra BioMed’s higher possible upside, analysts plainly believe Orchestra BioMed is more favorable than Westaim.

Earnings & Valuation

This table compares Westaim and Orchestra BioMed’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westaim	$8.63 million	44.11	$183.98 million	$0.81	3.67
Orchestra BioMed	$2.76 million	102.83	-$49.12 million	($1.48)	-5.36

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

Summary

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

About Westaim

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.

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.