Critical Contrast: Asensus Surgical (NYSE:ASXC) versus AVITA Medical (NASDAQ:RCEL)

Asensus Surgical (NYSE:ASXCGet Rating) and AVITA Medical (NASDAQ:RCELGet Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Asensus Surgical and AVITA Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asensus Surgical 0 0 1 0 3.00
AVITA Medical 0 0 0 0 N/A

Asensus Surgical currently has a consensus price target of $4.00, suggesting a potential upside of 687.71%. AVITA Medical has a consensus price target of $18.00, suggesting a potential upside of 160.87%. Given Asensus Surgical’s higher possible upside, equities research analysts plainly believe Asensus Surgical is more favorable than AVITA Medical.

Volatility & Risk

Asensus Surgical has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, AVITA Medical has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

27.0% of Asensus Surgical shares are owned by institutional investors. Comparatively, 33.7% of AVITA Medical shares are owned by institutional investors. 0.8% of Asensus Surgical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Asensus Surgical and AVITA Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Asensus Surgical -758.77% -29.22% -26.75%
AVITA Medical -76.13% -21.79% -20.13%

Valuation and Earnings

This table compares Asensus Surgical and AVITA Medical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Asensus Surgical $8.23 million 14.59 -$62.46 million ($0.28) -1.81
AVITA Medical $29.23 million 5.88 -$26.58 million ($1.03) -6.70

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

Summary

Asensus Surgical beats AVITA Medical on 7 of the 13 factors compared between the two stocks.

Asensus Surgical Company Profile (Get Rating)

Asensus Surgical, Inc., a medical device company, engages in the research, development, and sale of medical device robotics to enhance minimally invasive surgery (MIS) in the United States, Europe, and Asia. It digitizes the interface between the surgeon and the patient to pioneer a new era of Performance-Guided surgery by unlocking clinical intelligence for surgeons to enable consistently superior outcomes and a new standard of surgery. The company's products include Senhance Surgical system, a multi-port robotic surgery system that allows up to four arms to control robotic instruments and a camera for laparoscopic procedures. Its products also comprise instruments and other products, including 3mm diameter instruments, 3mm and 5mm hooks, and articulating instruments; and Senhance ultrasonic system, an advanced energy device to deliver controlled energy to ligate and divide tissue. The company was formerly known as TransEnterix, Inc. and changed its name to Asensus Surgical, Inc. in February 2021. Asensus Surgical, Inc. was founded in 2006 and is headquartered in Durham, North Carolina.

AVITA Medical Company Profile (Get Rating)

AVITA Medical Inc. operates as a commercial-stage regenerative tissue company in the United States, Australia, and the United Kingdom. It offers regenerative products to address unmet medical needs in burn injuries, trauma injuries, chronic wounds, and dermatological and aesthetics indications, including vitiligo. The company's patented and proprietary platform technology provides treatment solutions derived from the regenerative properties of a patient's own skin. Its lead product is RECELL System, a device that enables healthcare professionals to produce a suspension of Spray-On Skin cells using a small sample of the patient's own skin for use in the treatment of acute thermal burns in patients eighteen years and older. The company has a research collaboration with the University of Colorado School of Medicine to establish pre-clinical proof-of-concept for a spray-on treatment of genetically corrected cells; and a research collaboration with Houston Methodist Research Institute to explore molecular reversal of cellular aging through a novel cell suspension delivery system. The company was formerly known as AVITA Therapeutics, Inc. and changed its name to AVITA Medical Inc. in December 2020. AVITA Medical Inc. was incorporated in 2000 and is based in Valencia, California.

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