AVITA Medical (NASDAQ:RCEL – Get Free Report) and Allurion Technologies (NYSE:ALUR – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Volatility and Risk
AVITA Medical has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Allurion Technologies has a beta of -0.37, suggesting that its stock price is 137% less volatile than the S&P 500.
Profitability
This table compares AVITA Medical and Allurion Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AVITA Medical | -95.47% | -194.69% | -60.67% |
Allurion Technologies | -71.24% | N/A | -56.75% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AVITA Medical | $50.14 million | 6.70 | -$35.38 million | ($2.23) | -5.75 |
Allurion Technologies | $53.47 million | 0.46 | -$80.61 million | ($0.48) | -0.79 |
AVITA Medical has higher earnings, but lower revenue than Allurion Technologies. AVITA Medical is trading at a lower price-to-earnings ratio than Allurion Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for AVITA Medical and Allurion Technologies, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AVITA Medical | 0 | 2 | 1 | 0 | 2.33 |
Allurion Technologies | 0 | 1 | 3 | 1 | 3.00 |
AVITA Medical presently has a consensus target price of $16.50, indicating a potential upside of 28.71%. Allurion Technologies has a consensus target price of $2.88, indicating a potential upside of 656.58%. Given Allurion Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Allurion Technologies is more favorable than AVITA Medical.
Insider and Institutional Ownership
27.7% of AVITA Medical shares are held by institutional investors. Comparatively, 21.4% of Allurion Technologies shares are held by institutional investors. 1.8% of AVITA Medical shares are held by company insiders. Comparatively, 22.4% of Allurion Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Allurion Technologies beats AVITA Medical on 11 of the 15 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 Allurion Technologies
Allurion Technologies Inc. focuses on ending obesity with a weight loss platform to treat people who are overweight. Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon), as well as offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite. Allurion Technologies Inc. is headquartered in Natick, Massachusetts.
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