Beta Bionics (NASDAQ:BBNX – Get Free Report) and Avanos Medical (NYSE:AVNS – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Risk & Volatility
Beta Bionics has a beta of 3.37, suggesting that its stock price is 237% more volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Institutional and Insider Ownership
95.2% of Avanos Medical shares are held by institutional investors. 5.3% of Beta Bionics shares are held by company insiders. Comparatively, 2.3% of Avanos Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Beta Bionics | -61.31% | -26.30% | -23.25% |
| Avanos Medical | -10.39% | 5.39% | 3.97% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Beta Bionics and Avanos Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beta Bionics | 1 | 4 | 7 | 0 | 2.50 |
| Avanos Medical | 1 | 1 | 0 | 0 | 1.50 |
Beta Bionics currently has a consensus price target of $20.40, indicating a potential upside of 21.38%. Given Beta Bionics’ stronger consensus rating and higher probable upside, research analysts clearly believe Beta Bionics is more favorable than Avanos Medical.
Earnings and Valuation
This table compares Beta Bionics and Avanos Medical”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beta Bionics | $100.25 million | 7.54 | -$73.20 million | ($1.65) | -10.19 |
| Avanos Medical | $715.90 million | 1.64 | -$72.90 million | ($1.61) | -15.52 |
Avanos Medical has higher revenue and earnings than Beta Bionics. Avanos Medical is trading at a lower price-to-earnings ratio than Beta Bionics, indicating that it is currently the more affordable of the two stocks.
About Beta Bionics
Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.
About Avanos Medical
Avanos Medical, Inc., a medical technology company, offers medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions. The company also provides a portfolio of non-opioid pain solutions, including surgical pain and recovery products, such as ON-Q and ambIT surgical pain pumps, Game Ready cold, and compression therapy systems. In addition, it offers interventional pain solutions, which offers minimally invasive pain-relieving therapies, such as Coolief pain relief therapy; OrthogenRx's knee osteoarthritis hyaluronic acid pain relief injection products; and Trident radiofrequency ablation products to treat chronic pain conditions. It markets its products directly to hospitals and other healthcare providers, healthcare facilities, and other end-user customers, as well as through third-party wholesale distributors. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.
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