Contrasting Nevro (NYSE:NVRO) and AVITA Medical (NASDAQ:RCEL)

Nevro (NYSE:NVRO) and AVITA Medical (NASDAQ:RCEL) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Nevro and AVITA Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nevro $362.05 million 8.93 -$83.07 million ($3.12) -29.68
AVITA Medical $29.23 million 12.63 -$26.58 million ($0.95) -15.59

AVITA Medical has lower revenue, but higher earnings than Nevro. Nevro is trading at a lower price-to-earnings ratio than AVITA Medical, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

35.2% of AVITA Medical shares are owned by institutional investors. 2.6% of Nevro shares are owned by 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nevro and AVITA Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nevro 0 10 4 0 2.29
AVITA Medical 0 0 2 0 3.00

Nevro currently has a consensus price target of $130.83, suggesting a potential upside of 41.30%. AVITA Medical has a consensus price target of $34.00, suggesting a potential upside of 129.57%. Given AVITA Medical’s stronger consensus rating and higher possible upside, analysts clearly believe AVITA Medical is more favorable than Nevro.

Profitability

This table compares Nevro and AVITA Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nevro -27.51% -24.68% -12.86%
AVITA Medical -71.51% -19.32% -17.83%

Volatility & Risk

Nevro has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, AVITA Medical has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Summary

AVITA Medical beats Nevro on 9 of the 14 factors compared between the two stocks.

Nevro Company Profile

Nevro Corp. engages in the provision of medical devices. The firm focuses on providing products that improve the quality of life of patients suffering from debilitating chronic pain. It develops and commercializes senza spinal cord stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain. The company was founded by Konstantinos Alataris in March 2006 and is headquartered in Redwood City, CA.

AVITA Medical Company Profile

AVITA Medical, Inc., through its subsidiaries, engages in the development and commercialization of technology platform that enables point-of-care autologous skin restoration for multiple unmet needs. Its product RECELL system is a device that enables healthcare professionals to produce a suspension of spray-on skin cells using a small sample of the patient’s own skin for the treatment of acute thermal burns. The company is headquartered in Valencia, CA.

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