Critical Contrast: Avanos Medical (AVNS) & The Competition

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Avanos Medical (NYSE: AVNS) is one of 28 public companies in the “Surgical appliances & supplies” industry, but how does it contrast to its peers? We will compare Avanos Medical to related businesses based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Avanos Medical and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avanos Medical $611.60 million $79.30 million 30.66
Avanos Medical Competitors $1.31 billion $198.48 million 27.54

Avanos Medical’s peers have higher revenue and earnings than Avanos Medical. Avanos Medical is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

84.9% of Avanos Medical shares are held by institutional investors. Comparatively, 58.0% of shares of all “Surgical appliances & supplies” companies are held by institutional investors. 1.4% of Avanos Medical shares are held by company insiders. Comparatively, 10.3% of shares of all “Surgical appliances & supplies” companies 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.

Risk and Volatility

Avanos Medical has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Avanos Medical’s peers have a beta of 0.87, meaning that their average share price is 13% less volatile than the S&P 500.

Profitability

This table compares Avanos Medical and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avanos Medical 11.85% 7.61% 4.44%
Avanos Medical Competitors -166.86% -201.11% -22.18%

Analyst Ratings

This is a summary of current ratings for Avanos Medical and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avanos Medical 1 0 2 0 2.33
Avanos Medical Competitors 149 787 1402 72 2.58

Avanos Medical currently has a consensus price target of $67.50, suggesting a potential downside of 6.33%. As a group, “Surgical appliances & supplies” companies have a potential downside of 4.12%. Given Avanos Medical’s peers stronger consensus rating and higher possible upside, analysts clearly believe Avanos Medical has less favorable growth aspects than its peers.

Summary

Avanos Medical beats its peers on 7 of the 13 factors compared.

Avanos Medical Company Profile

Avanos Medical, Inc. operates as a medical technology company that focuses on eliminating pain, speeding recovery, and preventing infection for healthcare providers and patients worldwide. Its Medical Devices segment provides a portfolio of products that focuses on respiratory and digestive health, along with surgical and interventional pain management. Its products include post-operative pain management solutions, minimally invasive interventional pain therapies, closed airway suction systems, and enteral feeding tubes. This segment sells its products under the ON-Q, COOLIEF, MICROCUFF, MIC-KEY, HOMEPUMP, CORTRAK, and other brand names. The company markets its products directly to hospitals and other healthcare providers, as well as through third-party distribution channels. 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.

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