Head-To-Head Contrast: Avita Medical (NASDAQ:RCEL) & Zynex (NASDAQ:ZYXI)

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

Analyst Recommendations

This is a summary of recent ratings for Avita Medical and Zynex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avita Medical	1	1	5	0	2.57
Zynex	1	0	0	0	1.00

Avita Medical presently has a consensus target price of $11.40, suggesting a potential upside of 1.79%. Given Avita Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Avita Medical is more favorable than Zynex.

Insider and Institutional Ownership

27.7% of Avita Medical shares are held by institutional investors. Comparatively, 29.7% of Zynex shares are held by institutional investors. 2.2% of Avita Medical shares are held by company insiders. Comparatively, 49.3% of Zynex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Avita Medical has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avita Medical	$75.63 million	4.56	-$48.59 million	($1.44)	-7.78
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avita Medical	-56.96%	N/A	-78.53%
Zynex	-68.35%	-804.30%	-36.67%

Summary

Avita Medical beats Zynex on 8 of the 14 factors compared between the two stocks.

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.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.