AtriCure (NASDAQ: AVGR) and Avinger (NASDAQ:AVGR) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Volatility & Risk

AtriCure has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Avinger has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Valuation and Earnings

This table compares AtriCure and Avinger’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AtriCure $174.72 million 6.87 -$26.89 million ($0.83) -40.92
Avinger $9.93 million 1.66 -$48.73 million ($70.07) -0.02

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

Profitability

This table compares AtriCure and Avinger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AtriCure -10.85% -16.57% -9.74%
Avinger -477.76% N/A -178.69%

Institutional & Insider Ownership

90.8% of AtriCure shares are held by institutional investors. Comparatively, 1.5% of Avinger shares are held by institutional investors. 10.0% of AtriCure shares are held by company insiders. Comparatively, 1.5% of Avinger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AtriCure and Avinger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 1 4 0 2.80
Avinger 0 0 1 0 3.00

AtriCure presently has a consensus target price of $34.25, indicating a potential upside of 0.85%. Given AtriCure’s higher possible upside, equities research analysts clearly believe AtriCure is more favorable than Avinger.

Summary

AtriCure beats Avinger on 10 of the 14 factors compared between the two stocks.

AtriCure Company Profile

AtriCure, Inc. provides atrial fibrillation solutions to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy; and EPi-Sense guided coagulation system used for the temporary cardiac signal sensing and recording during surgery. It also provides SUBTLE cannula, an access device and conduit for the ablation device and endoscope to enable a closed chest endoscopic approach; multifunctional pens that allow surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and linear ablation devices, which enable physicians to create an expanded cardiac ablation lesion set. In addition, the company offers cryoICE cryoablation system used to ablate cardiac tissue for the treatment of cardiac arrhythmias; AtriClip system used to occlude the left atrial appendage by mechanically clamping the appendage; and CryoICE CRYO2 cryoablation system to apply cryo-energy to targeted intercostal peripheral nerves in the ribcage and temporarily relieve pain. Further, it provides Lumitip dissector to separate tissues to provide access to key anatomical structures that are targeted for ablation; Fusion Magnetic Retriever System that allows access around anatomical structures; and cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. AtriCure sells its products through independent distributors and direct sales personnel. The company was founded in 2000 and is headquartered in Mason, Ohio.

Avinger Company Profile

Avinger, Inc., a commercial-stage medical device company, designs, manufactures, and sells image-guided and catheter-based systems used by physicians to treat patients with peripheral arterial disease (PAD) in the United States and Europe. It develops lumivascular platform that integrates optical coherence tomography visualization with interventional catheters to provide real-time intravascular imaging during the treatment portion of PAD procedures. The company's lumivascular products comprise Lightbox imaging consoles, as well as the Ocelot family of catheters, which are designed to penetrate a total blockage in an artery; and Pantheris, an image-guided atherectomy device that allows physicians to precisely remove arterial plaque in PAD patients. In addition, its first-generation chronic total occlusion (CTO)-crossing catheters, Wildcat, and Kittycat 2, which employs a proprietary design that uses a rotational spinning technique allowing the physician to switch between passive and active modes when navigating across a CTO. The company sells and markets its products to interventional cardiologists, vascular surgeons, and interventional radiologists. Avinger, Inc. was founded in 2007 and is headquartered in Redwood City, California.

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