Financial Analysis: Avanos Medical (NYSE:AVNS) and CardioGenics (OTCMKTS:CGNH)

CardioGenics (OTCMKTS:CGNH) and Avanos Medical (NYSE:AVNS) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Institutional & Insider Ownership

95.2% of Avanos Medical shares are owned by institutional investors. 41.4% of CardioGenics shares are owned by insiders. Comparatively, 2.6% of Avanos Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CardioGenics and Avanos Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CardioGenics	N/A	N/A	N/A	N/A	N/A
Avanos Medical	$699.90 million	0.92	-$392.10 million	($1.58)	-8.80

CardioGenics has higher earnings, but lower revenue than Avanos Medical.

Profitability

This table compares CardioGenics and Avanos Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CardioGenics	N/A	N/A	N/A
Avanos Medical	-10.40%	5.47%	4.05%

Analyst Ratings

This is a breakdown of current ratings for CardioGenics and Avanos Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CardioGenics	0	0	0	0	0.00
Avanos Medical	1	1	0	0	1.50

Given CardioGenics’ higher probable upside, equities analysts clearly believe CardioGenics is more favorable than Avanos Medical.

Risk & Volatility

CardioGenics has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Summary

Avanos Medical beats CardioGenics on 5 of the 9 factors compared between the two stocks.

About CardioGenics

CardioGenics Holdings Inc. engages in the development and commercialization of diagnostic test products for the in vitro diagnostics testing market in the United States, Canada, Europe, and internationally. Its products include QL Care Analyzer, a portable, stand-alone, and automated point-of-care (POC) immunoassay analyzer that uses a proprietary self-metering cartridge to perform immunoassay tests at the POC; a series of immunoassay tests to identify cardiac markers in the blood at the time of a heart attack; and paramagnetic beads that are used as solid surfaces in heterogeneous immunoassay tests by clinical and research laboratories. The company was formerly known as Jag Media Holdings, Inc. and changed its name to CardioGenics Holdings Inc. in 2009. The company was founded in 1997 and is headquartered in Mississauga, Canada.

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.