Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) and AVITA Medical (NASDAQ:RCEL – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
84.1% of Treace Medical Concepts shares are owned by institutional investors. Comparatively, 27.7% of AVITA Medical shares are owned by institutional investors. 24.4% of Treace Medical Concepts 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Treace Medical Concepts and AVITA Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Treace Medical Concepts | 0 | 6 | 0 | 0 | 2.00 |
| AVITA Medical | 0 | 2 | 1 | 0 | 2.33 |
Earnings and Valuation
This table compares Treace Medical Concepts and AVITA Medical”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Treace Medical Concepts | $187.12 million | 2.64 | -$49.53 million | ($0.99) | -8.01 |
| AVITA Medical | $50.14 million | 6.84 | -$35.38 million | ($2.23) | -5.87 |
AVITA Medical has lower revenue, but higher earnings 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 Treace Medical Concepts and AVITA Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Treace Medical Concepts | -30.33% | -51.12% | -26.36% |
| AVITA Medical | -95.47% | -194.69% | -60.67% |
Volatility & Risk
Treace Medical Concepts has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, AVITA Medical has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
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.
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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