Head to Head Analysis: Avanos Medical (NYSE:AVNS) and ReWalk Robotics (NASDAQ:LFWD)

ReWalk Robotics (NASDAQ:LFWD) and Avanos Medical (NYSE:AVNS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ReWalk Robotics and Avanos Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReWalk Robotics	0	0	1	0	3.00
Avanos Medical	0	2	1	0	2.33

ReWalk Robotics presently has a consensus price target of $9.00, indicating a potential upside of 74.42%. Avanos Medical has a consensus price target of $31.00, indicating a potential upside of 59.22%. Given ReWalk Robotics’ stronger consensus rating and higher probable upside, research analysts clearly believe ReWalk Robotics is more favorable than Avanos Medical.

Profitability

This table compares ReWalk Robotics and Avanos Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ReWalk Robotics	-159.76%	-28.19%	-23.29%
Avanos Medical	-9.15%	4.10%	2.99%

Insider and Institutional Ownership

26.8% of ReWalk Robotics shares are held by institutional investors. Comparatively, 95.2% of Avanos Medical shares are held by institutional investors. 2.1% of ReWalk Robotics shares are held by company insiders. Comparatively, 2.9% of Avanos Medical 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 ReWalk Robotics and Avanos Medical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReWalk Robotics	$13.85 million	3.17	-$22.13 million	($2.87)	-1.80
Avanos Medical	$680.10 million	1.31	-$61.80 million	($1.33)	-14.64

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

Volatility & Risk

ReWalk Robotics has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Avanos Medical beats ReWalk Robotics on 7 of the 13 factors compared between the two stocks.

About ReWalk Robotics

ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. It offers ReWalk personal exoskeleton and rehabilitation exoskeleton devices; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke; AlterG Anti-Gravity System for use in physical and neurological rehabilitation and athletic training; MyoCycle devices; and ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke. The company markets and sells its products directly to institutions and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was incorporated in 2001 and is headquartered in Yokneam Illit, Israel.

About Avanos Medical

Avanos Medical, Inc., a medical technology company, offers medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions. The company also provides a portfolio of non-opioid pain solutions, including surgical pain and recovery products, such as ON-Q and ambIT surgical pain pumps, Game Ready cold, and compression therapy systems. In addition, it offers interventional pain solutions, which offers minimally invasive pain-relieving therapies, such as Coolief pain relief therapy; OrthogenRx's knee osteoarthritis hyaluronic acid pain relief injection products; and Trident radiofrequency ablation products to treat chronic pain conditions. It markets its products directly to hospitals and other healthcare providers, healthcare facilities, and other end-user customers, as well as through third-party wholesale distributors. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.