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

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

Profitability

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

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

Earnings and Valuation

This table compares Avanos Medical and ReWalk Robotics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avanos Medical	$673.30 million	1.35	-$61.80 million	($1.33)	-14.83
ReWalk Robotics	$13.85 million	2.98	-$22.13 million	($2.87)	-1.69

ReWalk Robotics has lower revenue, but higher earnings 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.

Risk and Volatility

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avanos Medical	0	1	1	0	2.50
ReWalk Robotics	0	0	1	0	3.00

Avanos Medical presently has a consensus price target of $31.00, suggesting a potential upside of 57.12%. ReWalk Robotics has a consensus price target of $9.00, suggesting a potential upside of 85.57%. Given ReWalk Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe ReWalk Robotics is more favorable than Avanos Medical.

Insider and Institutional Ownership

95.2% of Avanos Medical shares are held by institutional investors. Comparatively, 26.8% of ReWalk Robotics shares are held by institutional investors. 3.9% of Avanos Medical shares are held by insiders. Comparatively, 2.1% of ReWalk Robotics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.