Inogen (NASDAQ:INGN) and Avanos Medical (NYSE:AVNS) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Risk and Volatility
Inogen has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Inogen and Avanos Medical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Inogen | 0 | 3 | 1 | 0 | 2.25 |
Avanos Medical | 1 | 2 | 2 | 0 | 2.20 |
Inogen currently has a consensus target price of $63.00, indicating a potential upside of 22.35%. Avanos Medical has a consensus target price of $38.40, indicating a potential downside of 15.92%. Given Inogen's stronger consensus rating and higher probable upside, research analysts plainly believe Inogen is more favorable than Avanos Medical.
Institutional & Insider Ownership
95.1% of Inogen shares are owned by institutional investors. Comparatively, 94.8% of Avanos Medical shares are owned by institutional investors. 4.8% of Inogen shares are owned by insiders. Comparatively, 1.5% of Avanos Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Inogen and Avanos Medical's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Inogen | $361.94 million | 3.10 | $20.95 million | $1.07 | 47.07 |
Avanos Medical | $697.60 million | 3.14 | $-45,900,000.00 | $1.07 | 42.76 |
Inogen has higher earnings, but lower revenue than Avanos Medical. Avanos Medical is trading at a lower price-to-earnings ratio than Inogen, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Inogen and Avanos Medical's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Inogen | -0.66% | 0.21% | 0.16% |
Avanos Medical | 1.93% | 3.20% | 2.28% |
Summary
Avanos Medical beats Inogen on 8 of the 13 factors compared between the two stocks.