Head-To-Head Contrast: Owlet (NYSE:OWLT) versus Elutia (NASDAQ:ELUT)

Elutia (NASDAQ:ELUT) and Owlet (NYSE:OWLT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Elutia and Owlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elutia	1	0	0	0	1.00
Owlet	1	1	3	0	2.40

Owlet has a consensus target price of $15.00, suggesting a potential upside of 216.46%. Given Owlet’s stronger consensus rating and higher possible upside, analysts clearly believe Owlet is more favorable than Elutia.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elutia	$12.29 million	2.96	$53.38 million	$0.95	0.86
Owlet	$105.70 million	1.31	-$39.68 million	($0.75)	-6.32

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

Institutional and Insider Ownership

74.0% of Elutia shares are owned by institutional investors. Comparatively, 72.6% of Owlet shares are owned by institutional investors. 17.8% of Elutia shares are owned by company insiders. Comparatively, 36.2% of Owlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Elutia has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Owlet has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500.

Profitability

This table compares Elutia and Owlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elutia	426.93%	-407.37%	-47.08%
Owlet	-8.61%	-601.24%	-15.96%

About Elutia

Elutia Inc., a commercial-stage company, develops and commercializes drug-eluting biologics products for neurostimulation, wound care, and breast reconstruction in the United States. The company operates in three segments: Device Protection; Women's Health; and Cardiovascular. It offers CanGaroo Envelope, which is used to accommodate cardiac implantable electronic devices, such as pacemakers and internal defibrillators. The company also develops CanGarooRM, a combination of the CanGaroo envelope with antibiotics, to reduce the risk of infection after surgical implantation of an electronic device. In addition, it provides ProxiCor for cardiac tissue repair and pericardial closure; Tyke, an extracellular material that is used in the repair of cardiac structures for neonate and infant patients; and VasCure, a patch material to repair or reconstruct the peripheral vasculature. Further, the company offers SimpliDerm, which uses human acellular dermal matrices for tissue repair and reconstruction in various applications, such as sports medicine, hernia repair, trauma reconstruction, and breast reconstruction surgeries following mastectomy. It serves hospitals and healthcare facilities through its direct sales force, independent sales agents, and distributors. The company was formerly known as Aziyo Biologics, Inc. and changed its name to Elutia Inc. in September 2023. Elutia Inc. was incorporated in 2015 and is headquartered in Silver Spring, Maryland.

About Owlet

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.