Head-To-Head Contrast: Bioventus (NASDAQ:BVS) and RxSight (NASDAQ:RXST)

RxSight (NASDAQ:RXST) and Bioventus (NASDAQ:BVS) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

78.8% of RxSight shares are held by institutional investors. Comparatively, 62.9% of Bioventus shares are held by institutional investors. 10.1% of RxSight shares are held by insiders. Comparatively, 33.5% of Bioventus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares RxSight and Bioventus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RxSight	$134.48 million	1.45	-$38.94 million	($1.13)	-4.14
Bioventus	$568.09 million	1.94	$22.73 million	$0.77	17.05

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

Risk & Volatility

RxSight has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Bioventus has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for RxSight and Bioventus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RxSight	3	7	2	0	1.92
Bioventus	0	1	5	0	2.83

RxSight presently has a consensus target price of $8.17, suggesting a potential upside of 74.62%. Bioventus has a consensus target price of $16.80, suggesting a potential upside of 27.95%. Given RxSight’s higher possible upside, equities analysts plainly believe RxSight is more favorable than Bioventus.

Profitability

This table compares RxSight and Bioventus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RxSight	-36.80%	-17.35%	-14.70%
Bioventus	9.36%	28.08%	9.82%

Summary

Bioventus beats RxSight on 11 of the 14 factors compared between the two stocks.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.

About Bioventus

Bioventus Inc. a medical device company, focuses on developing and commercializing clinically treatments that engage and enhance the body’s natural healing process in the United States and internationally. The company’s portfolio of products includes pain treatments, which comprise non-surgical joint pain injection therapies, as well as peripheral nerve stimulation products. Its surgical solutions include bone graft substitutes to fuse and grow bones, enhance results following spinal and other orthopedic surgeries; and ultrasonic medical devices for the use in precise bone sculpting, remove tumors, and tissue debridement. The company’s restorative therapies comprise an ultrasonic bone healing system for fracture care; skin allografts; and products that are used to support healing of chronic wounds, as well as advanced rehabilitation devices designed to help patients regain leg or hand function. It serves physicians spanning the orthopedic continuum, including sports medicine, total joint reconstruction, hand and upper extremities, foot and ankle, podiatric surgery, trauma, spine, and neurosurgery in the physician’s office or clinic, ambulatory surgical centers, or in the hospital setting. The company was founded in 2011 and is headquartered in Durham, North Carolina.