KORU Medical Systems (NASDAQ:KRMD – Get Free Report) and AVITA Medical (NASDAQ:RCEL – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Institutional & Insider Ownership
58.6% of KORU Medical Systems shares are owned by institutional investors. Comparatively, 27.7% of AVITA Medical shares are owned by institutional investors. 25.6% of KORU Medical Systems shares are owned by company insiders. Comparatively, 1.8% of AVITA Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for KORU Medical Systems and AVITA Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KORU Medical Systems | 0 | 0 | 2 | 1 | 3.33 |
| AVITA Medical | 0 | 2 | 1 | 0 | 2.33 |
Profitability
This table compares KORU Medical Systems and AVITA Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KORU Medical Systems | -38.16% | -20.82% | -15.02% |
| AVITA Medical | -92.04% | -118.27% | -52.75% |
Valuation and Earnings
This table compares KORU Medical Systems and AVITA Medical”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KORU Medical Systems | $30.82 million | 3.95 | -$13.74 million | ($0.28) | -9.50 |
| AVITA Medical | $54.14 million | 5.09 | -$35.38 million | ($1.76) | -6.07 |
KORU Medical Systems has higher earnings, but lower revenue than AVITA Medical. KORU Medical Systems is trading at a lower price-to-earnings ratio than AVITA Medical, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
KORU Medical Systems has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, AVITA Medical has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.
Summary
KORU Medical Systems beats AVITA Medical on 10 of the 15 factors compared between the two stocks.
About KORU Medical Systems
KORU Medical Systems, Inc. develops and manufactures medical devices and supplies in the United States and internationally. It offers the freedom infusion systems to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Its products include the FREEDOM60 syringe infusion system, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing products. The company was incorporated in 1980 and is based in Mahwah, New Jersey.
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.
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