RxSight (NASDAQ:RXST) & AxoGen (NASDAQ:AXGN) Critical Comparison

AxoGen (NASDAQ:AXGN) and RxSight (NASDAQ:RXST) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for AxoGen and RxSight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	1	2	12	0	2.73
RxSight	3	7	2	0	1.92

AxoGen currently has a consensus price target of $51.27, indicating a potential upside of 34.86%. RxSight has a consensus price target of $8.17, indicating a potential upside of 65.77%. Given RxSight’s higher possible upside, analysts clearly believe RxSight is more favorable than AxoGen.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$251.17 million	8.14	-$15.70 million	($0.68)	-55.91
RxSight	$134.48 million	1.52	-$38.94 million	($1.13)	-4.36

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

Insider & Institutional Ownership

80.3% of AxoGen shares are held by institutional investors. Comparatively, 78.8% of RxSight shares are held by institutional investors. 2.4% of AxoGen shares are held by company insiders. Comparatively, 10.1% of RxSight shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AxoGen	-13.36%	-8.90%	-6.47%
RxSight	-36.80%	-17.35%	-14.70%

Volatility and Risk

AxoGen has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, RxSight has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

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

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.

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.