Avanos Medical (NYSE:AVNS) and Establishment Labs (NASDAQ:ESTA) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Volatility & Risk
Avanos Medical has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Earnings & Valuation
This table compares Avanos Medical and Establishment Labs' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Avanos Medical | $697.60 million | 3.15 | $-45,900,000.00 | $1.07 | 42.97 |
Establishment Labs | $89.57 million | 18.06 | $-38,150,000.00 | ($1.86) | -37.11 |
Establishment Labs has lower revenue, but higher earnings than Avanos Medical. Establishment Labs is trading at a lower price-to-earnings ratio than Avanos Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Avanos Medical and Establishment Labs' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Avanos Medical | 1.93% | 3.20% | 2.28% |
Establishment Labs | -46.40% | -49.51% | -24.21% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Avanos Medical and Establishment Labs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Avanos Medical | 1 | 2 | 2 | 0 | 2.20 |
Establishment Labs | 0 | 1 | 4 | 0 | 2.80 |
Avanos Medical currently has a consensus target price of $38.40, suggesting a potential downside of 16.49%. Establishment Labs has a consensus target price of $41.40, suggesting a potential downside of 40.03%. Given Avanos Medical's higher possible upside, research analysts clearly believe Avanos Medical is more favorable than Establishment Labs.
Institutional and Insider Ownership
94.8% of Avanos Medical shares are held by institutional investors. Comparatively, 54.8% of Establishment Labs shares are held by institutional investors. 1.5% of Avanos Medical shares are held by insiders. Comparatively, 2.6% of Establishment Labs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Avanos Medical beats Establishment Labs on 8 of the 14 factors compared between the two stocks.