AxoGen (AXGN) & CONMED (CNMD) Critical Contrast

AxoGen (NASDAQ: AXGN) and CONMED (NASDAQ:CNMD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares AxoGen and CONMED’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AxoGen -18.83% -61.66% -21.29%
CONMED 8.71% 9.46% 4.28%

Analyst Ratings

This is a summary of recent ratings for AxoGen and CONMED, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AxoGen 0 0 8 0 3.00
CONMED 0 2 1 0 2.33

AxoGen currently has a consensus price target of $35.57, indicating a potential downside of 30.18%. CONMED has a consensus price target of $59.50, indicating a potential downside of 19.89%. Given CONMED’s higher possible upside, analysts plainly believe CONMED is more favorable than AxoGen.

Dividends

CONMED pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. AxoGen does not pay a dividend. CONMED pays out 42.3% of its earnings in the form of a dividend.

Risk & Volatility

AxoGen has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, CONMED has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Institutional and Insider Ownership

75.9% of AxoGen shares are owned by institutional investors. Comparatively, 95.4% of CONMED shares are owned by institutional investors. 7.9% of AxoGen shares are owned by insiders. Comparatively, 3.1% of CONMED shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares AxoGen and CONMED’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AxoGen $60.43 million 29.14 -$10.44 million ($0.31) -164.35
CONMED $796.39 million 2.61 $55.48 million $1.89 39.30

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

Summary

CONMED beats AxoGen on 11 of the 16 factors compared between the two stocks.

AxoGen Company Profile

AxoGen, Inc. develops and markets surgical solutions for peripheral nerve injuries. The company's surgical 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 damaged 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 can be 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.

CONMED Company Profile

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for minimally invasive procedures in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers orthopedic surgery products, including sports medicine products comprising powered resection instruments, arthroscopes, reconstructive systems, tissue repair sets, and metal and bioabsorbable implants, as well as related disposable products and fluid management systems; powered surgical instruments for use in bone orthopedic, arthroscopic, oral/maxillofacial, podiatric, plastic, ENT, neurological, spinal, and cardiothoracic surgeries; sports biologics and tissue products; and surgical visualization products. It offers orthopedic surgery products under Hall, CONMED Linvatec, Concept, and Shutt brands. The company also offers general surgery product in the areas of advanced surgical comprising clinical insufflation system; electrosurgical products; endomechanical products comprising instruments, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors; and uterine manipulator (VCARE) for use in increasing the efficiency of laparoscopic hysterectomies and other gynecologic laparoscopic procedures. In addition, it offers general surgery product in the areas of endoscopic technologies, including minimally invasive diagnostic and therapeutic products; critical care products cover a line of vital signs, cardiac monitoring, and patient care products, including ECG electrodes and accessories, cardiac defibrillation and pacing pads, and suction instruments and tubing; and physician's office electrosurgical product used by dermatologists. The company's products are used by surgeons and physicians in orthopedics, general surgery, gynecology, neurosurgery, and gastroenterology. CONMED Corporation was founded in 1970 and is headquartered in Utica, New York.

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