Contrasting Avita Medical (NASDAQ:RCEL) & Nano-X Imaging (NASDAQ:NNOX)

Nano-X Imaging (NASDAQ:NNOX) and Avita Medical (NASDAQ:RCEL) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Volatility & Risk

Nano-X Imaging has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Avita Medical has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nano-X Imaging and Avita Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano-X Imaging	$13.02 million	2.25	-$75.02 million	($2.14)	-0.17
Avita Medical	$75.63 million	6.31	-$48.59 million	($1.44)	-10.77

Avita Medical has higher revenue and earnings than Nano-X Imaging. Avita Medical is trading at a lower price-to-earnings ratio than Nano-X Imaging, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nano-X Imaging and Avita Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano-X Imaging	-926.05%	-116.93%	-100.67%
Avita Medical	-56.96%	N/A	-78.53%

Institutional & Insider Ownership

21.5% of Nano-X Imaging shares are owned by institutional investors. Comparatively, 27.7% of Avita Medical shares are owned by institutional investors. 7.7% of Nano-X Imaging shares are owned by company insiders. Comparatively, 2.2% of Avita Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nano-X Imaging and Avita Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano-X Imaging	1	2	2	1	2.50
Avita Medical	1	1	5	0	2.57

Nano-X Imaging presently has a consensus price target of $4.33, suggesting a potential upside of 1,063.31%. Avita Medical has a consensus price target of $12.20, suggesting a potential downside of 21.34%. Given Nano-X Imaging’s higher probable upside, equities research analysts clearly believe Nano-X Imaging is more favorable than Avita Medical.

Summary

Avita Medical beats Nano-X Imaging on 11 of the 15 factors compared between the two stocks.

About Nano-X Imaging

Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The company provides teleradiology services and develops artificial intelligence applications to be used in real-world medical imaging applications. Its X-ray source is based on a digital micro-electro-mechanical systems semiconductor cathode. The company's solutions include Nanox Multi Source System comprising Nanox.ARC, a medical tomographic imaging system incorporating its digital X-ray source, and Nanox. CLOUD, a platform which employs a matching engine to match medical images to radiologists that provides image repository, connectivity to diagnostic assistive AI systems, billing, and reporting. It also offers Nanox.MARKETPLACE, which connects imaging facilities with radiologists and enables radiologists to provide, as well as customers to obtain remote interpretations of imaging data; artificial intelligence (AI)-based software imaging solutions to hospitals, health maintenance organizations, integrated delivery networks, pharmaceutical companies, and insurers that are designed to identify or predict undiagnosed or underdiagnosed medical conditions through the mining of data included in images of existing computed tomography scans for osteoporosis and cardiovascular disease; Teleradiology Services, which provide imaging interpretation services for radiology practices, hospitals, medical clinics, diagnostic imaging centers, urgent care facilities; and multi-specialty physician groups, contracts, and radiology readings. The company is headquartered in Petach Tikva, Israel.

About Avita Medical

AVITA Medical, Inc., together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions. It develops RECELL GO to control the manual process of disaggregation, filtration, and soak time. The company was formerly known as AVITA Therapeutics, Inc. AVITA Medical, Inc. was incorporated in 2020 and is headquartered in Valencia, California.