Teleflex (NYSE:TFX) vs. Avanos Medical (NYSE:AVNS) Critical Review

Teleflex (NYSE:TFXGet Free Report) and Avanos Medical (NYSE:AVNSGet Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Teleflex -10.28% 15.64% 8.71%
Avanos Medical -67.00% 6.21% 4.58%

Analyst Recommendations

This is a summary of current ratings and target prices for Teleflex and Avanos Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teleflex 2 8 2 0 2.00
Avanos Medical 1 1 0 0 1.50

Teleflex currently has a consensus target price of $141.88, suggesting a potential upside of 34.70%. Given Teleflex’s stronger consensus rating and higher probable upside, equities analysts clearly believe Teleflex is more favorable than Avanos Medical.

Earnings & Valuation

This table compares Teleflex and Avanos Medical”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teleflex $3.05 billion 1.53 $69.68 million ($7.35) -14.33
Avanos Medical $687.80 million 0.87 -$392.10 million ($10.19) -1.26

Teleflex has higher revenue and earnings than Avanos Medical. Teleflex is trading at a lower price-to-earnings ratio than Avanos Medical, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.6% of Teleflex shares are owned by institutional investors. Comparatively, 95.2% of Avanos Medical shares are owned by institutional investors. 1.4% of Teleflex shares are owned by company insiders. Comparatively, 2.6% of Avanos Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Teleflex has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Avanos Medical has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Summary

Teleflex beats Avanos Medical on 11 of the 14 factors compared between the two stocks.

About Teleflex

(Get Free Report)

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.

About Avanos Medical

(Get Free Report)

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.

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