Avita Medical (NASDAQ:RCEL – Get Free Report) and Flora Growth (NASDAQ:FLGC – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Volatility & Risk
Avita Medical has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
Profitability
This table compares Avita Medical and Flora Growth’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% |
| Flora Growth | -32.03% | -64.02% | -34.46% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avita Medical | 1 | 1 | 5 | 0 | 2.57 |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
Avita Medical presently has a consensus target price of $11.40, suggesting a potential downside of 14.48%. Given Avita Medical’s stronger consensus rating and higher possible upside, equities analysts clearly believe Avita Medical is more favorable than Flora Growth.
Earnings and Valuation
This table compares Avita Medical and Flora Growth”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avita Medical | $75.63 million | 5.42 | -$48.59 million | ($1.44) | -9.26 |
| Flora Growth | $57.61 million | 0.09 | -$15.91 million | ($32.49) | -0.15 |
Flora Growth has lower revenue, but higher earnings than Avita Medical. Avita Medical is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
27.7% of Avita Medical shares are held by institutional investors. Comparatively, 36.0% of Flora Growth shares are held by institutional investors. 2.2% of Avita Medical shares are held by insiders. Comparatively, 2.3% of Flora Growth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Avita Medical beats Flora Growth 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 Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
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