Head-To-Head Analysis: Olympus (OTCMKTS:OCPNY) and AxoGen (NASDAQ:AXGN)

AxoGen (NASDAQ:AXGN) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares AxoGen and Olympus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$225.21 million	11.52	-$15.70 million	($0.68)	-71.00
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

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

Institutional & Insider Ownership

80.3% of AxoGen shares are owned by institutional investors. Comparatively, 0.0% of Olympus shares are owned by institutional investors. 2.4% of AxoGen shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AxoGen	-13.36%	-8.90%	-6.47%
Olympus	13.80%	24.30%	9.30%

Volatility and Risk

AxoGen has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for AxoGen and Olympus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	1	1	10	0	2.75
Olympus	0	0	1	0	3.00

AxoGen presently has a consensus price target of $51.56, indicating a potential upside of 6.78%. Given AxoGen’s higher possible upside, equities research analysts plainly believe AxoGen is more favorable than Olympus.

Summary

Olympus beats AxoGen on 8 of the 14 factors compared between the two stocks.

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral 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 peripheral nerves; AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and 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, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.