AxoGen (NASDAQ: AXGN) and Integer (NYSE:ITGR) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Volatility & Risk

AxoGen has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Integer has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for AxoGen and Integer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AxoGen 0 0 6 0 3.00
Integer 0 3 1 0 2.25

AxoGen currently has a consensus target price of $26.17, suggesting a potential downside of 0.70%. Integer has a consensus target price of $51.00, suggesting a potential upside of 12.96%. Given Integer’s higher probable upside, analysts plainly believe Integer is more favorable than AxoGen.

Insider & Institutional Ownership

66.0% of AxoGen shares are owned by institutional investors. Comparatively, 95.1% of Integer shares are owned by institutional investors. 9.3% of AxoGen shares are owned by company insiders. Comparatively, 4.8% of Integer 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.

Earnings & Valuation

This table compares AxoGen and Integer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AxoGen $41.11 million 21.85 -$14.41 million ($0.40) -65.88
Integer $1.39 billion 1.03 $5.96 million $0.63 71.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
AxoGen -24.74% -91.00% -25.48%
Integer 1.42% 11.22% 3.03%

Summary

Integer beats AxoGen on 9 of the 13 factors compared between the two stocks.

About AxoGen

AxoGen, Inc. provides surgical solutions for peripheral nerve injuries. The company’s surgical nerve repair solutions include Avance Nerve Graft, an off-the-shelf processed human nerve allograft for bridging severed 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 nerves; and AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect injured peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments. Its solutions also comprise Avive Soft Tissue Membrane, a minimally processed human umbilical cord membrane that is used as a resorbable soft tissue covering to separate tissues and modulate inflammation in the surgical bed. In addition, the company offers AcroVal neurosensory and motor testing system, which consists of AcroGrip for use in hand grip strength measurement; AcroPinch for measuring pinch strength; and Pressure-Specified Sensory Device, a somatosensory evaluation and measurement device. Further, it provides 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 in the United States, Canada, the United Kingdom and other European countries, and internationally. AxoGen, Inc. is headquartered in Alachua, Florida.

About Integer

Greatbatch, Inc. is a developer and manufacturer of medical devices and components. The Company operates through two segments: Greatbatch Medical and QiG Group (QiG). Greatbatch Medical designs and manufactures products where the Company either owns the intellectual property or has unique manufacturing and assembly expertise. Greatbatch Medical’s products include medical devices and components for the cardiac, neuromodulation, orthopedics, portable medical, vascular and energy markets. QiG focuses on developing medical device systems for some of healthcare’s challenges and reflects the Company’s strategic evolution of its product offerings in order to raise the growth and profitability profile of the Company. QiG utilizes a diversified portfolio approach with three investment modes: new medical device systems commercialization, collaborative programs with OEM customers and strategic equity positions in emerging healthcare companies.

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