Critical Analysis: Aveanna Healthcare (NASDAQ:AVAH) and Xcelerate (OTCMKTS:XCRT)

Aveanna Healthcare (NASDAQ:AVAH) and Xcelerate (OTCMKTS:XCRT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

Aveanna Healthcare has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Xcelerate has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aveanna Healthcare and Xcelerate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aveanna Healthcare	0	3	3	0	2.50
Xcelerate	0	0	0	0	0.00

Aveanna Healthcare presently has a consensus price target of $7.92, suggesting a potential downside of 6.42%. Given Aveanna Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Aveanna Healthcare is more favorable than Xcelerate.

Earnings and Valuation

This table compares Aveanna Healthcare and Xcelerate”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aveanna Healthcare	$2.02 billion	0.87	-$10.93 million	$0.08	105.75
Xcelerate	N/A	N/A	N/A	N/A	N/A

Xcelerate has lower revenue, but higher earnings than Aveanna Healthcare.

Profitability

This table compares Aveanna Healthcare and Xcelerate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aveanna Healthcare	0.85%	-54.56%	3.17%
Xcelerate	N/A	N/A	N/A

Institutional and Insider Ownership

88.0% of Aveanna Healthcare shares are held by institutional investors. 7.8% of Aveanna Healthcare shares are held by 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

Aveanna Healthcare beats Xcelerate on 9 of the 10 factors compared between the two stocks.

About Aveanna Healthcare

Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals or skilled nursing facilities. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children and adults; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products, including formulas, supplies, and pumps to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

About Xcelerate

Xcelerate Inc. acquires engineering/patents and applies to early-stage medical technology companies. The company engages in the formulation, packaging and marketing of consumer health and beauty, and clinically tested skin care products; development of artificial intelligence and virtual health technology to assist patients; owning and licensing the rights to various forms of medical equipment. It also provides Ceramedx, a natural plant based therapeutic skin care product; Earth Science Beauty, which offers natural facial skincare targeted to specific skin types. The company was formerly known as Union Dental Holdings, Inc. and changed its name to Xcelerate Inc. Xcelerate Inc. was incorporated in 1996 is based in Mauldin, South Carolina.