CONMED (NYSE:CNMD) vs. Avita Medical (NASDAQ:RCEL) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of recent ratings for Avita Medical and CONMED, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avita Medical	1	1	5	0	2.57
CONMED	1	7	0	0	1.88

Avita Medical currently has a consensus target price of $16.60, indicating a potential upside of 2.47%. CONMED has a consensus target price of $44.00, indicating a potential downside of 12.66%. Given Avita Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Avita Medical is more favorable than CONMED.

Profitability

This table compares Avita Medical and CONMED’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avita Medical	-42.65%	N/A	-71.34%
CONMED	5.36%	13.93%	6.26%

Volatility & Risk

Avita Medical has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, CONMED has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

27.7% of Avita Medical shares are owned by institutional investors. 2.2% of Avita Medical shares are owned by company insiders. Comparatively, 0.3% of CONMED shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Avita Medical and CONMED”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avita Medical	$71.61 million	7.11	-$48.59 million	($1.18)	-13.73
CONMED	$1.37 billion	1.09	$47.06 million	$2.42	20.82

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

About Avita Medical

AVITA Medical is a regenerative medicine company focused on treatments for skin restoration. Its flagship technology, the RECELL System, enables clinicians to use a small sample of a patient’s healthy skin to prepare a suspension of skin cells for application to wounds. The company’s RECELL products are used in the treatment of burns and certain other skin injuries, including full-thickness skin defects. The approach is intended to support wound coverage while reducing the amount of donor skin needed compared with conventional skin-grafting procedures.

About CONMED

CONMED Corporation is a medical technology company that develops and markets devices and equipment for orthopedic and general surgery. Its products support minimally invasive procedures and include arthroscopy systems, powered surgical instruments, electrosurgical equipment, and endoscopic technologies. The company was founded in 1970 and serves hospitals, surgery centers, and other healthcare providers. Its products are sold in the United States and internationally.