Reviewing AVITA Medical (NASDAQ:RCEL) and Treace Medical Concepts (NASDAQ:TMCI)

AVITA Medical (NASDAQ:RCEL) and Treace Medical Concepts (NASDAQ:TMCI) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares AVITA Medical and Treace Medical Concepts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AVITA Medical	$50.14 million	6.51	-$35.38 million	($2.23)	-5.58
Treace Medical Concepts	$187.12 million	2.58	-$49.53 million	($0.99)	-7.83

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

Profitability

This table compares AVITA Medical and Treace Medical Concepts’ 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%
Treace Medical Concepts	-30.33%	-51.12%	-26.36%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AVITA Medical and Treace Medical Concepts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AVITA Medical	0	2	1	0	2.33
Treace Medical Concepts	0	6	0	0	2.00

AVITA Medical presently has a consensus price target of $16.50, suggesting a potential upside of 32.64%. Treace Medical Concepts has a consensus price target of $7.40, suggesting a potential downside of 4.52%. Given AVITA Medical’s stronger consensus rating and higher possible upside, analysts clearly believe AVITA Medical is more favorable than Treace Medical Concepts.

Insider and Institutional Ownership

27.7% of AVITA Medical shares are held by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are held by institutional investors. 1.8% of AVITA Medical shares are held by company insiders. Comparatively, 24.4% of Treace Medical Concepts 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.

Risk & Volatility

AVITA Medical has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

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 Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.