Artivion (NYSE:AORT) and Avita Medical (NASDAQ:RCEL) Financial Review

Artivion (NYSE:AORT) and Avita Medical (NASDAQ:RCEL) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Institutional and Insider Ownership

86.4% of Artivion shares are owned by institutional investors. Comparatively, 27.7% of Avita Medical shares are owned by institutional investors. 6.3% of Artivion shares are owned by company insiders. Comparatively, 2.2% of Avita Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Artivion has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Avita Medical has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Earnings and Valuation

This table compares Artivion and Avita Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Artivion	$441.33 million	2.27	$9.77 million	($0.36)	-57.00
Avita Medical	$71.61 million	7.74	-$48.59 million	($1.18)	-14.96

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Artivion and Avita Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Artivion	1	0	6	0	2.71
Avita Medical	1	1	5	0	2.57

Artivion presently has a consensus price target of $39.00, suggesting a potential upside of 90.06%. Avita Medical has a consensus price target of $15.00, suggesting a potential downside of 15.01%. Given Artivion’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Artivion is more favorable than Avita Medical.

Profitability

This table compares Artivion and Avita Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Artivion	-3.65%	5.12%	2.36%
Avita Medical	-42.65%	N/A	-71.34%

Summary

Artivion beats Avita Medical on 12 of the 14 factors compared between the two stocks.

About Artivion

Artivion, Inc. is a medical device company focused on treating aortic disease and supporting cardiac and vascular surgery. Its products include aortic stent grafts and surgical grafts, mechanical heart valves, and BioGlue, a surgical adhesive used in cardiovascular procedures. The company was founded as CryoLife and adopted the Artivion name in 2022. It serves healthcare providers in the United States and international markets. Artivion is headquartered in Kennesaw, Georgia. Its chief executive officer is Pat Mackin.

About Avita Medical

Avita Medical, Inc. (NASDAQ: RCEL) is a regenerative medicine company focused on developing and commercializing therapies that use a patient’s own cells to help restore damaged skin and tissue. Its lead product is the RECELL System, an autologous cell-harvesting device designed to prepare a suspension of a patient’s skin cells at the point of care for application to wounds. RECELL is used in the treatment of certain thermal burn wounds and other skin injuries. The system is intended to support wound healing and may reduce the amount of donor skin required for grafting by enabling clinicians to create a cell suspension from a small sample of the patient’s healthy skin.