Financial Contrast: Avita Medical (NASDAQ:RCEL) & Context Therapeutics (NASDAQ:CNTX)

Avita Medical (NASDAQ:RCEL) and Context Therapeutics (NASDAQ:CNTX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Avita Medical has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Context Therapeutics has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Profitability

This table compares Avita Medical and Context Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avita Medical	-68.87%	-632.62%	-71.52%
Context Therapeutics	N/A	-38.80%	-37.53%

Valuation and Earnings

This table compares Avita Medical and Context Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avita Medical	$64.25 million	2.13	-$61.85 million	($1.97)	-2.61
Context Therapeutics	N/A	N/A	-$26.73 million	($0.36)	-3.89

Context Therapeutics has lower revenue, but higher earnings than Avita Medical. Context Therapeutics 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 and Institutional Ownership

27.7% of Avita Medical shares are held by institutional investors. Comparatively, 14.0% of Context Therapeutics shares are held by institutional investors. 2.8% of Avita Medical shares are held by insiders. Comparatively, 2.8% of Context Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Avita Medical and Context Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avita Medical	2	1	3	0	2.17
Context Therapeutics	1	0	7	1	2.89

Avita Medical presently has a consensus target price of $11.60, suggesting a potential upside of 125.68%. Context Therapeutics has a consensus target price of $5.20, suggesting a potential upside of 271.43%. Given Context Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Context Therapeutics is more favorable than Avita Medical.

Summary

Context Therapeutics beats Avita Medical on 10 of the 13 factors compared between the two stocks.

About Avita Medical

AVITA Medical, Inc., together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions. It develops RECELL GO to control the manual process of disaggregation, filtration, and soak time. The company was formerly known as AVITA Therapeutics, Inc. AVITA Medical, Inc. was incorporated in 2020 and is headquartered in Valencia, California.

About Context Therapeutics

Context Therapeutics Inc., a biopharmaceutical company, develops products for the treatment of solid tumors. Its lead program candidate is CTIM-76, an anti-Claudin 6 (CLDN6) x anti-CD3 bispecific antibody that is intended to redirect T-cell-mediated lysis toward malignant cells expressing CLDN6. The company has a collaboration and licensing agreement with Integral Molecular, Inc. for the development of a CLDN6 bispecific monoclonal antibody for cancer therapy. Context Therapeutics Inc. was incorporated in 2015 and is headquartered in Philadelphia, Pennsylvania.