AxoGen (NASDAQ: AXGN) and Arch Therapeutics (NASDAQ:ARTH) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for AxoGen and Arch Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AxoGen 0 0 6 0 3.00
Arch Therapeutics 0 0 4 0 3.00

AxoGen currently has a consensus price target of $15.90, indicating a potential downside of 6.74%. Arch Therapeutics has a consensus price target of $2.83, indicating a potential upside of 251.99%. Given Arch Therapeutics’ higher probable upside, analysts clearly believe Arch Therapeutics is more favorable than AxoGen.

Earnings and Valuation

This table compares AxoGen and Arch Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AxoGen $50.02 million 11.33 -$8.05 million ($0.42) -40.59
Arch Therapeutics N/A N/A N/A N/A N/A

Arch Therapeutics has higher revenue, but lower earnings than AxoGen.

Profitability

This table compares AxoGen and Arch Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AxoGen -27.50% -114.64% -27.71%
Arch Therapeutics N/A -178.83% -102.46%

Institutional & Insider Ownership

66.8% of AxoGen shares are held by institutional investors. 9.3% of AxoGen shares are held by company 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.

Summary

AxoGen beats Arch Therapeutics on 6 of the 8 factors compared between the two stocks.

AxoGen Company Profile

AxoGen, Inc. provides surgical solutions for peripheral nerve injuries. The company’s surgical nerve repair solutions include Avance Nerve Graft, an off-the-shelf processed human nerve allograft for bridging severed nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed nerves; and AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect injured peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments. Its solutions also comprise Avive Soft Tissue Membrane, a minimally processed human umbilical cord membrane that is used as a resorbable soft tissue covering to separate tissues and modulate inflammation in the surgical bed. In addition, the company offers AcroVal neurosensory and motor testing system, which consists of AcroGrip for use in hand grip strength measurement; AcroPinch for measuring pinch strength; and Pressure-Specified Sensory Device, a somatosensory evaluation and measurement device. Further, it provides AxoTouch two point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals in the United States, Canada, the United Kingdom and other European countries, and internationally. AxoGen, Inc. is headquartered in Alachua, Florida.

Arch Therapeutics Company Profile

Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.

Receive News & Ratings for AxoGen Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AxoGen Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.