Avita Medical (NASDAQ:RCEL – Get Free Report) and NexGel (NASDAQ:NXGL – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
Volatility and Risk
Avita Medical has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, NexGel has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Profitability
This table compares Avita Medical and NexGel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avita Medical | -56.96% | N/A | -78.53% |
| NexGel | -51.26% | -121.18% | -41.15% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avita Medical | 1 | 1 | 5 | 0 | 2.57 |
| NexGel | 1 | 1 | 0 | 0 | 1.50 |
Avita Medical presently has a consensus price target of $11.40, indicating a potential upside of 1.60%. NexGel has a consensus price target of $2.00, indicating a potential upside of 672.20%. Given NexGel’s higher possible upside, analysts plainly believe NexGel is more favorable than Avita Medical.
Valuation and Earnings
This table compares Avita Medical and NexGel”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avita Medical | $75.63 million | 4.57 | -$48.59 million | ($1.44) | -7.79 |
| NexGel | $11.42 million | 0.22 | -$3.00 million | ($0.71) | -0.36 |
NexGel has lower revenue, but higher earnings than Avita Medical. Avita Medical is trading at a lower price-to-earnings ratio than NexGel, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
27.7% of Avita Medical shares are owned by institutional investors. Comparatively, 2.2% of NexGel shares are owned by institutional investors. 2.2% of Avita Medical shares are owned by company insiders. Comparatively, 19.8% of NexGel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
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 NexGel
NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. The company was incorporated in 2009 and is based in Langhorne, Pennsylvania.
Receive News & Ratings for Avita Medical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avita Medical and related companies with MarketBeat.com's FREE daily email newsletter.
