Electromed (NYSE:ELMD – Get Rating) and AxoGen (NASDAQ:AXGN – Get Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Electromed and AxoGen, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Electromed | 0 | 0 | 0 | 0 | N/A |
AxoGen | 0 | 1 | 2 | 0 | 2.67 |
AxoGen has a consensus price target of $19.67, indicating a potential upside of 171.26%. Given AxoGen’s higher possible upside, analysts plainly believe AxoGen is more favorable than Electromed.
Profitability
This table compares Electromed and AxoGen’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Electromed | 4.94% | 5.77% | 5.06% |
AxoGen | -21.19% | -21.12% | -11.92% |
Risk & Volatility
Electromed has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, AxoGen has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
Institutional and Insider Ownership
39.3% of Electromed shares are owned by institutional investors. Comparatively, 73.7% of AxoGen shares are owned by institutional investors. 26.7% of Electromed shares are owned by company insiders. Comparatively, 6.3% of AxoGen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Electromed and AxoGen’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Electromed | $35.76 million | 3.04 | $2.36 million | $0.22 | 57.96 |
AxoGen | $127.36 million | 2.39 | -$26.99 million | ($0.65) | -11.15 |
Electromed has higher earnings, but lower revenue than AxoGen. AxoGen is trading at a lower price-to-earnings ratio than Electromed, indicating that it is currently the more affordable of the two stocks.
Summary
Electromed beats AxoGen on 8 of the 13 factors compared between the two stocks.
Electromed Company Profile (Get Rating)
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.
AxoGen Company Profile (Get Rating)
AxoGen, Inc., together with its subsidiaries, develops and markets surgical solutions for physical damage or transection to peripheral nerves. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; and AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and Avive Soft Tissue Membrane, a processed human umbilical cord membrane that can be used as a resorbable soft tissue covering to separate tissues in the surgical bed. In addition, the company offers AxoTouch two point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. It provides its products to hospitals, surgery centers, and military hospitals plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons in the United States, Canada, Germany, the United Kingdom and other European countries, South Korea, and internationally. AxoGen, Inc. is headquartered in Alachua, Florida.
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Read More: Electromed (NYSE:ELMD) versus AxoGen (NASDAQ:AXGN) Critical Analysis