Solana (NASDAQ:HSDT – Get Free Report) and Avanos Medical (NYSE:AVNS – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Profitability
This table compares Solana and Avanos Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solana | -679.54% | -104.96% | -20.67% |
| Avanos Medical | -10.40% | 5.47% | 4.05% |
Institutional and Insider Ownership
18.6% of Solana shares are held by institutional investors. Comparatively, 95.2% of Avanos Medical shares are held by institutional investors. 14.4% of Solana shares are held by company insiders. Comparatively, 2.3% of Avanos Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solana | $6.02 million | 19.33 | -$40.89 million | ($490.68) | 0.00 |
| Avanos Medical | $701.20 million | 1.63 | -$72.90 million | ($1.58) | -15.59 |
Solana has higher earnings, but lower revenue than Avanos Medical. Avanos Medical is trading at a lower price-to-earnings ratio than Solana, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Solana and Avanos Medical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solana | 1 | 0 | 1 | 0 | 2.00 |
| Avanos Medical | 1 | 1 | 0 | 0 | 1.50 |
Solana currently has a consensus price target of $4.00, indicating a potential upside of 88.68%. Given Solana’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Solana is more favorable than Avanos Medical.
Risk and Volatility
Solana has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
About Solana
Helius Medical Technologies, Inc., a neurotechnology company, focuses on developing, licensing, and acquiring non-implantable technologies for the treatment of symptoms caused by neurological disease or trauma. The company's product is Portable Neuromodulation Stimulator, a non-surgical medical device intended for use as a short term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury, as well as to be used in conjunction with supervised therapeutic exercise. The company was incorporated in 2014 and is headquartered in Newtown, Pennsylvania.
About Avanos Medical
Avanos Medical, Inc., a medical technology company, offers medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions. The company also provides a portfolio of non-opioid pain solutions, including surgical pain and recovery products, such as ON-Q and ambIT surgical pain pumps, Game Ready cold, and compression therapy systems. In addition, it offers interventional pain solutions, which offers minimally invasive pain-relieving therapies, such as Coolief pain relief therapy; OrthogenRx's knee osteoarthritis hyaluronic acid pain relief injection products; and Trident radiofrequency ablation products to treat chronic pain conditions. It markets its products directly to hospitals and other healthcare providers, healthcare facilities, and other end-user customers, as well as through third-party wholesale distributors. 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.
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