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

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Avanos Medical $611.60 million $79.30 million 30.76
Avanos Medical Competitors $1.31 billion $198.48 million 27.35

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.

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%

Institutional and Insider Ownership

89.9% of Avanos Medical shares are owned by institutional investors. Comparatively, 58.8% of shares of all “Surgical appliances & supplies” companies are owned by institutional investors. 1.4% of Avanos Medical shares are owned by company insiders. Comparatively, 10.3% of shares of all “Surgical appliances & supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Avanos Medical has a beta of 1.6, meaning that its stock 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 stock price is 13% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avanos Medical 1 0 2 0 2.33
Avanos Medical Competitors 149 785 1393 71 2.58

Avanos Medical currently has a consensus target price of $67.50, suggesting a potential downside of 6.63%. As a group, “Surgical appliances & supplies” companies have a potential downside of 1.22%. Given Avanos Medical’s peers stronger consensus rating and higher probable 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.

About Avanos Medical

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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