TELA Bio (NASDAQ:TELA) versus AVITA Medical (NASDAQ:RCEL) Head-To-Head Comparison

AVITA Medical (NASDAQ:RCELGet Rating) and TELA Bio (NASDAQ:TELAGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional & Insider Ownership

33.7% of AVITA Medical shares are owned by institutional investors. Comparatively, 87.7% of TELA Bio shares are owned by institutional investors. 15.9% of TELA Bio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AVITA Medical and TELA Bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVITA Medical 0 0 0 0 N/A
TELA Bio 0 0 1 0 3.00

AVITA Medical currently has a consensus target price of $18.00, indicating a potential upside of 179.50%. TELA Bio has a consensus target price of $22.00, indicating a potential upside of 144.44%. Given AVITA Medical’s higher probable upside, analysts clearly believe AVITA Medical is more favorable than TELA Bio.

Valuation and Earnings

This table compares AVITA Medical and TELA Bio’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AVITA Medical $29.23 million 5.49 -$26.58 million ($1.03) -6.25
TELA Bio $29.46 million 4.45 -$33.28 million ($2.29) -3.93

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

Profitability

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

Net Margins Return on Equity Return on Assets
AVITA Medical -76.13% -21.79% -20.13%
TELA Bio -112.94% -106.93% -46.96%

Risk & Volatility

AVITA Medical has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, TELA Bio has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Summary

AVITA Medical beats TELA Bio on 7 of the 13 factors compared between the two stocks.

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.

TELA Bio Company Profile (Get Rating)

TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. It provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. The company markets its products through a single direct sales force, principally in the United States. TELA Bio, Inc. was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.

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