Reviewing AVITA Medical (NASDAQ:RCEL) & Nevro (NYSE:NVRO)

AVITA Medical (NASDAQ:RCEL) and Nevro (NYSE:NVRO) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Valuation & Earnings

This table compares AVITA Medical and Nevro’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 12.63 -$26.58 million ($0.95) -15.59
Nevro $362.05 million 8.93 -$83.07 million ($3.12) -29.68

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

Insider & Institutional Ownership

35.2% of AVITA Medical shares are held by institutional investors. 2.6% of Nevro shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AVITA Medical and Nevro, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVITA Medical 0 0 2 0 3.00
Nevro 0 10 4 0 2.29

AVITA Medical presently has a consensus target price of $34.00, suggesting a potential upside of 129.57%. Nevro has a consensus target price of $130.83, suggesting a potential upside of 41.30%. Given AVITA Medical’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AVITA Medical is more favorable than Nevro.

Profitability

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

Net Margins Return on Equity Return on Assets
AVITA Medical -71.51% -19.32% -17.83%
Nevro -27.51% -24.68% -12.86%

Volatility and Risk

AVITA Medical has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Nevro has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

AVITA Medical beats Nevro on 9 of the 14 factors compared between the two stocks.

AVITA Medical Company Profile

AVITA Medical, Inc., through its subsidiaries, engages in the development and commercialization of technology platform that enables point-of-care autologous skin restoration for multiple unmet needs. Its product RECELL system is 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 the treatment of acute thermal burns. The company is headquartered in Valencia, CA.

Nevro Company Profile

Nevro Corp. engages in the provision of medical devices. The firm focuses on providing products that improve the quality of life of patients suffering from debilitating chronic pain. It develops and commercializes senza spinal cord stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain. The company was founded by Konstantinos Alataris in March 2006 and is headquartered in Redwood City, CA.

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