Analyzing AxoGen (NASDAQ:AXGN) & AtriCure (NASDAQ:ATRC)

AtriCure (NASDAQ:ATRC) and AxoGen (NASDAQ:AXGN) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Risk and Volatility

AtriCure has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, AxoGen has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares AtriCure and AxoGen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtriCure	$534.53 million	5.34	-$11.45 million	$0.21	267.00
AxoGen	$251.17 million	7.41	-$15.70 million	($0.68)	-50.91

AtriCure has higher revenue and earnings than AxoGen. AxoGen is trading at a lower price-to-earnings ratio than AtriCure, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AtriCure	1.85%	2.34%	1.77%
AxoGen	-13.36%	-8.90%	-6.47%

Institutional and Insider Ownership

99.1% of AtriCure shares are owned by institutional investors. Comparatively, 80.3% of AxoGen shares are owned by institutional investors. 4.0% of AtriCure shares are owned by insiders. Comparatively, 2.4% of AxoGen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for AtriCure and AxoGen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtriCure	0	5	7	0	2.58
AxoGen	1	2	11	1	2.80

AtriCure currently has a consensus price target of $54.10, indicating a potential downside of 3.51%. AxoGen has a consensus price target of $51.73, indicating a potential upside of 49.41%. Given AxoGen’s stronger consensus rating and higher possible upside, analysts clearly believe AxoGen is more favorable than AtriCure.

Summary

AtriCure beats AxoGen on 10 of the 15 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure. In addition, the company sells Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.

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.