Analyzing Invacare (IVC) and ReWalk Robotics (RWLK)

Invacare (NYSE: IVC) and ReWalk Robotics (NASDAQ:RWLK) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

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This is a summary of recent ratings and recommmendations for Invacare and ReWalk Robotics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invacare 0 1 2 0 2.67
ReWalk Robotics 1 0 4 0 2.60

Invacare presently has a consensus price target of $16.50, indicating a potential downside of 12.00%. ReWalk Robotics has a consensus price target of $2.80, indicating a potential upside of 154.52%. Given ReWalk Robotics’ higher possible upside, analysts clearly believe ReWalk Robotics is more favorable than Invacare.

Institutional and Insider Ownership

2.5% of ReWalk Robotics shares are owned by institutional investors. 2.1% of Invacare shares are owned by company insiders. Comparatively, 6.9% of ReWalk Robotics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Invacare has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, ReWalk Robotics has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares Invacare and ReWalk Robotics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Invacare $966.50 million 0.76 -$76.54 million ($1.93) -9.72
ReWalk Robotics $7.75 million 4.26 -$24.71 million ($0.99) -1.11

ReWalk Robotics has lower revenue, but higher earnings than Invacare. Invacare is trading at a lower price-to-earnings ratio than ReWalk Robotics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Invacare and ReWalk Robotics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invacare -7.92% -14.95% -6.31%
ReWalk Robotics -318.81% -678.44% -85.08%

Dividends

Invacare pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. ReWalk Robotics does not pay a dividend. Invacare pays out -2.6% of its earnings in the form of a dividend.

Invacare Company Profile

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company operates through four segments: North America/Home Medical Equipment, Institutional Products Group, Europe, and the Asia/Pacific. It offers mobility and seating products, such as power wheelchairs under the Invacare TDX brand; custom manual wheelchairs under the Invacare, Invacare Top End, and Küschall brand names; and seating and positioning products. The company also provides lifestyle products, including pressure relieving overlays and mattress replacement systems under the Invacare Softform and microAIR brands; safe resident handling products; residential care and home beds and bed accessories, and manual wheelchairs under the Invacare brand name; and personal care products. In addition, the company offers respiratory therapy products comprising stationary oxygen concentrators under the Perfecto2, Perfecto2 V, and Platinum brands; Invacare HomeFill oxygen systems; and Invacare SOLO2 and XPO2 transportable oxygen concentrators. Further, it sells and distributes healthcare furnishings consisting of long-term care beds, case goods, safe patient handling equipment, and other equipment and accessories for long-term care customers. It sells its products primarily to home medical equipment providers through retail and e-commerce channels, as well as to residential care operators, distributors, and government health service customers through its sales force, independent manufacturers' representatives, and distributors. Invacare Corporation was founded in 1885 and is headquartered in Elyria, Ohio.

ReWalk Robotics Company Profile

ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes exoskeletons for wheelchair-bound individuals with mobility impairments or other medical conditions. The company offers ReWalk Personal for everyday use to paraplegic individuals at home and in their communities; and ReWalk Rehabilitation for exercise and therapy used in hospitals and rehabilitation centers in the United States and Europe. It is also developing ReWalk Restore, a soft suit exoskeleton for individuals who have suffered a stroke. ReWalk Robotics Ltd. markets and sells its products directly to third party payers, institutions and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was founded in 2001 and is headquartered in Yokne'am Illit, Israel.

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