Financial Contrast: Avanos Medical (AVNS) versus Histogenics (HSGX)

Avanos Medical (NYSE:AVNS) and Histogenics (NASDAQ:HSGX) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Avanos Medical and Histogenics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avanos Medical 1 0 2 0 2.33
Histogenics 0 1 4 0 2.80

Avanos Medical currently has a consensus price target of $67.50, suggesting a potential upside of 6.12%. Histogenics has a consensus price target of $3.63, suggesting a potential upside of 500.17%. Given Histogenics’ stronger consensus rating and higher possible upside, analysts clearly believe Histogenics is more favorable than Avanos Medical.

Profitability

This table compares Avanos Medical and Histogenics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avanos Medical 11.85% 7.61% 4.44%
Histogenics N/A N/A -160.97%

Earnings & Valuation

This table compares Avanos Medical and Histogenics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avanos Medical $611.60 million 4.92 $79.30 million $2.35 27.07
Histogenics N/A N/A -$26.41 million ($0.98) -0.62

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

Risk and Volatility

Avanos Medical has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Histogenics has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

84.9% of Avanos Medical shares are owned by institutional investors. Comparatively, 45.9% of Histogenics shares are owned by institutional investors. 1.4% of Avanos Medical shares are owned by insiders. Comparatively, 19.7% of Histogenics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Avanos Medical beats Histogenics on 8 of the 13 factors compared between the two stocks.

About Avanos Medical

Avanos Medical, Inc. operates as a medical technology company that focuses on eliminating pain, speeding recovery, and preventing infection for healthcare providers and patients worldwide. Its Medical Devices segment provides a portfolio of products that focuses on respiratory and digestive health, along with surgical and interventional pain management. Its products include post-operative pain management solutions, minimally invasive interventional pain therapies, closed airway suction systems, and enteral feeding tubes. This segment sells its products under the ON-Q, COOLIEF, MICROCUFF, MIC-KEY, HOMEPUMP, CORTRAK, and other brand names. The company markets its products directly to hospitals and other healthcare providers, as well as through third-party distribution channels. 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.

About Histogenics

Histogenics Corporation, a clinical-stage company, focuses on the development of restorative cell therapies in the United States. The company offers NeoCart, a tissue implant, which is in Phase III clinical trial to treat tissue injury in the field of orthopedics, specifically cartilage damage in the knee. It has an exclusive channel collaboration agreement with Intrexon Corporation for the development and commercialization of allogeneic genetically modified chondrocyte cell therapeutics for the treatment or repair of damaged articular hyaline cartilage in humans. Histogenics Corporation was founded in 2000 and is headquartered in Waltham, Massachusetts.

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