Comparing Hill-Rom (NYSE:HRC) & Avinger (NASDAQ:AVGR)

Avinger (NASDAQ:AVGR) and Hill-Rom (NYSE:HRC) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares Avinger and Hill-Rom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avinger $8.76 million 7.76 -$19.01 million ($0.46) -1.55
Hill-Rom $2.88 billion 3.53 $223.00 million $5.53 27.98

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

Volatility & Risk

Avinger has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Hill-Rom has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Avinger and Hill-Rom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avinger 0 0 2 0 3.00
Hill-Rom 0 5 1 0 2.17

Avinger currently has a consensus target price of $2.50, indicating a potential upside of 250.63%. Hill-Rom has a consensus target price of $141.80, indicating a potential downside of 8.35%. Given Avinger’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Avinger is more favorable than Hill-Rom.

Profitability

This table compares Avinger and Hill-Rom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avinger -160.26% -102.07% -44.29%
Hill-Rom 8.12% 21.74% 8.41%

Insider and Institutional Ownership

11.5% of Avinger shares are owned by institutional investors. Comparatively, 84.1% of Hill-Rom shares are owned by institutional investors. 0.6% of Avinger shares are owned by company insiders. Comparatively, 0.7% of Hill-Rom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Hill-Rom beats Avinger on 9 of the 14 factors compared between the two stocks.

Avinger Company Profile

Avinger, Inc. is a commercial-stage medical device company, which engages in the designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease. Its products include Pantheris, Lightbox, Ocelot, Wildcat, Juicebox, and Kittycat. The company was founded by John B. Simpson and Himanshu N. Patel on March 8, 2007 and is headquartered in Redwood City, CA.

Hill-Rom Company Profile

Hill-Rom Holdings, Inc. operates as a medical technology company. The firm focuses on patient care solutions that improve clinical and economic outcomes. It operates through the following segments: Patient Support System, Front Line Care and Surgical Solutions. The Patient Support Systems segment provides bed frames and surfaces, mobility and clinical workflow solutions. The Front Line Care segment offers respiratory care products and sells medical diagnostic equipment and a diversified portfolio of devices. The Surgical Solutions segment supplies surgical products including tables, lights, pendants, positioning devices, various other surgical products and accessories. The company was founded by William A. Hillenbrand on August 7, 1969 and is headquartered in Chicago, IL.

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