Avanos Medical (NYSE:AVNS) and Wright Medical Group (NASDAQ:WMGI) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This is a breakdown of current recommendations and price targets for Avanos Medical and Wright Medical Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wright Medical Group||0||1||12||0||2.92|
Avanos Medical presently has a consensus price target of $67.50, suggesting a potential downside of 2.19%. Wright Medical Group has a consensus price target of $31.08, suggesting a potential upside of 7.70%. Given Wright Medical Group’s stronger consensus rating and higher possible upside, analysts clearly believe Wright Medical Group is more favorable than Avanos Medical.
This table compares Avanos Medical and Wright Medical Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wright Medical Group||-24.74%||-1.94%||-0.50%|
Valuation and Earnings
This table compares Avanos Medical and Wright Medical Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avanos Medical||$611.60 million||5.33||$79.30 million||$2.35||29.37|
|Wright Medical Group||$744.99 million||4.13||-$202.59 million||($0.22)||-131.18|
Avanos Medical has higher earnings, but lower revenue than Wright Medical Group. Wright Medical Group is trading at a lower price-to-earnings ratio than Avanos Medical, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.9% of Avanos Medical shares are owned by institutional investors. 1.4% of Avanos Medical shares are owned by company insiders. Comparatively, 4.0% of Wright Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Avanos Medical has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Wright Medical Group has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Avanos Medical beats Wright Medical Group on 9 of the 14 factors compared between the two stocks.
Avanos Medical Company Profile
Avanos Medical, Inc. operates as a medical technology company that focuses on eliminating pain, speeding recovery, and preventing infection for healthcare providers and patients worldwide. Its Medical Devices segment provides a portfolio of products that focuses on respiratory and digestive health, along with surgical and interventional pain management. Its products include post-operative pain management solutions, minimally invasive interventional pain therapies, closed airway suction systems, and enteral feeding tubes. This segment sells its products under the ON-Q, COOLIEF, MICROCUFF, MIC-KEY, HOMEPUMP, CORTRAK, and other brand names. The company markets its products directly to hospitals and other healthcare providers, as well as through third-party distribution channels. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.
Wright Medical Group Company Profile
Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells extremities and biologics products. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopaedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives and independent sales agencies in the United States, as well as direct sales offices and distributors in approximately 50 countries. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands.
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