Financial Review: AxoGen (NASDAQ:AXGN) vs. Olympus (OTCMKTS:OCPNY)

Olympus (OTCMKTS:OCPNY) and AxoGen (NASDAQ:AXGN) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Olympus and AxoGen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olympus	13.80%	24.30%	9.30%
AxoGen	-13.36%	-8.90%	-6.47%

Insider & Institutional Ownership

0.0% of Olympus shares are owned by institutional investors. Comparatively, 80.3% of AxoGen shares are owned by institutional investors. 2.4% of AxoGen shares are owned by 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.

Valuation & Earnings

This table compares Olympus and AxoGen”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95
AxoGen	$225.21 million	9.99	-$15.70 million	($0.68)	-61.54

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

Risk and Volatility

Olympus has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, AxoGen has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Olympus and AxoGen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olympus	0	0	1	0	3.00
AxoGen	1	1	10	0	2.75

AxoGen has a consensus price target of $51.56, suggesting a potential upside of 23.19%. Given AxoGen’s higher probable upside, analysts clearly believe AxoGen is more favorable than Olympus.

Summary

Olympus beats AxoGen on 8 of the 14 factors compared between the two stocks.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.