Head to Head Review: QT Imaging (NASDAQ:QTI) and AxoGen (NASDAQ:AXGN)

AxoGen (NASDAQ:AXGN) and QT Imaging (NASDAQ:QTI) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares AxoGen and QT Imaging”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$187.34 million	3.70	-$21.72 million	($0.22)	-71.14
QT Imaging	$4.00 million	4.14	-$4.03 million	N/A	N/A

QT Imaging has lower revenue, but higher earnings than AxoGen.

Volatility & Risk

AxoGen has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, QT Imaging has a beta of -0.2, suggesting that its share price is 120% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AxoGen and QT Imaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	0	0	5	0	3.00
QT Imaging	0	0	0	0	0.00

AxoGen currently has a consensus target price of $22.60, indicating a potential upside of 44.41%. Given AxoGen’s stronger consensus rating and higher probable upside, analysts plainly believe AxoGen is more favorable than QT Imaging.

Profitability

This table compares AxoGen and QT Imaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AxoGen	-7.91%	-14.91%	-7.49%
QT Imaging	N/A	N/A	-65.94%

Institutional & Insider Ownership

80.3% of AxoGen shares are held by institutional investors. Comparatively, 24.2% of QT Imaging shares are held by institutional investors. 7.0% of AxoGen shares are held by insiders. Comparatively, 75.4% of QT Imaging shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

AxoGen beats QT Imaging on 7 of the 12 factors compared between the two stocks.

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral 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; 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; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. 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 AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.

About QT Imaging

QT Imaging Holdings, Inc. engages in the research, development, and commercialization of body imaging systems for detection, diagnosis, monitoring, and treatment of diseases. The company offers QT Ultrasound Breast Scanner, an ultrasonic imaging system that provides reflection-mode and transmission-mode images of a patient’s breast. QT Imaging Holdings, Inc. was founded in 2011 and is based in Novato, California.