AVITA Medical (NASDAQ:RCEL) and GenMark Diagnostics (NASDAQ:GNMK) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Valuation & Earnings
This table compares AVITA Medical and GenMark Diagnostics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| AVITA Medical | $14.26 million | 31.28 | $-42,030,000.00 | ($2.07) | -9.96 |
| GenMark Diagnostics | $88.02 million | 19.92 | $-47,350,000.00 | ($0.82) | -29.26 |
AVITA Medical has higher earnings, but lower revenue than GenMark Diagnostics. GenMark Diagnostics is trading at a lower price-to-earnings ratio than AVITA Medical, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for AVITA Medical and GenMark Diagnostics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| AVITA Medical | 0 | 0 | 4 | 0 | 3.00 |
| GenMark Diagnostics | 0 | 5 | 0 | 0 | 2.00 |
AVITA Medical presently has a consensus target price of $38.75, suggesting a potential upside of 86.75%. GenMark Diagnostics has a consensus target price of $22.0125, suggesting a potential downside of 8.24%. Given AVITA Medical's stronger consensus rating and higher possible upside, equities analysts plainly believe AVITA Medical is more favorable than GenMark Diagnostics.
Profitability
This table compares AVITA Medical and GenMark Diagnostics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| AVITA Medical | N/A | N/A | N/A |
| GenMark Diagnostics | -16.95% | -39.36% | -13.02% |
Insider and Institutional Ownership
15.9% of AVITA Medical shares are held by institutional investors. Comparatively, 96.9% of GenMark Diagnostics shares are held by institutional investors. 3.3% of GenMark Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
AVITA Medical has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, GenMark Diagnostics has a beta of 3.02, indicating that its share price is 202% more volatile than the S&P 500.
Summary
AVITA Medical beats GenMark Diagnostics on 9 of the 14 factors compared between the two stocks.
