Contrasting AxoGen (NASDAQ:AXGN) & Zynex (NASDAQ:ZYXI)

AxoGen (NASDAQ:AXGN) and Zynex (NASDAQ:ZYXI) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

77.1% of AxoGen shares are held by institutional investors. Comparatively, 31.0% of Zynex shares are held by institutional investors. 6.3% of AxoGen shares are held by company insiders. Comparatively, 44.3% of Zynex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares AxoGen and Zynex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AxoGen $112.30 million 5.13 -$23.79 million ($0.60) -23.22
Zynex $80.12 million 5.01 $9.07 million $0.26 44.42

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

Risk and Volatility

AxoGen has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Zynex has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
AxoGen -16.89% -17.22% -10.36%
Zynex 5.18% 9.30% 7.18%

Analyst Recommendations

This is a summary of recent ratings for AxoGen and Zynex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AxoGen 0 1 3 0 2.75
Zynex 0 1 3 0 2.75

AxoGen currently has a consensus price target of $24.50, indicating a potential upside of 75.88%. Zynex has a consensus price target of $21.00, indicating a potential upside of 81.82%. Given Zynex’s higher probable upside, analysts plainly believe Zynex is more favorable than AxoGen.

Summary

Zynex beats AxoGen on 9 of the 12 factors compared between the two stocks.

About AxoGen

AxoGen, Inc. engages in the development and market of surgical solutions for peripheral nerve regeneration and repair. It also provides products and education to improve surgical treatment algorithms for peripheral nerve damage or discontinuity. The firm’s products include avance nerve graft, axoguard nerve connector, axoguard nerve protector, avive soft tissue membrane, acroval neurosensory and motor testing system, and axotouch two-point discriminator. The company was founded in 1977 and is headquartered in Alachua, FL.

About Zynex

Zynex, Inc. engages in the design, manufacture, and marketing of medical devices. It sells electrotherapy medical devices used for pain management and rehabilitation. The company also develops a new blood volume monitor for use in hospitals and surgery centers. Zynex was founded by Thomas Sandgaard in 1996 and is headquartered in Englewood, CO.

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