Avanos Medical (NYSE:AVNS – Get Free Report) and Neogen (NASDAQ:NEOG – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
95.2% of Avanos Medical shares are held by institutional investors. Comparatively, 96.7% of Neogen shares are held by institutional investors. 2.3% of Avanos Medical shares are held by insiders. Comparatively, 0.5% of Neogen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Avanos Medical and Neogen”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avanos Medical | $715.90 million | 1.64 | -$72.90 million | ($1.61) | -15.52 |
| Neogen | $870.40 million | 3.00 | -$7.90 million | ($0.03) | -398.67 |
Neogen has higher revenue and earnings than Avanos Medical. Neogen is trading at a lower price-to-earnings ratio than Avanos Medical, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Avanos Medical and Neogen, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avanos Medical | 1 | 1 | 0 | 0 | 1.50 |
| Neogen | 1 | 1 | 3 | 0 | 2.40 |
Neogen has a consensus price target of $12.67, suggesting a potential upside of 5.91%. Given Neogen’s stronger consensus rating and higher possible upside, analysts clearly believe Neogen is more favorable than Avanos Medical.
Profitability
This table compares Avanos Medical and Neogen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avanos Medical | -10.39% | 5.39% | 3.97% |
| Neogen | -0.91% | 2.78% | 1.74% |
Risk and Volatility
Avanos Medical has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Neogen has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.
Summary
Neogen beats Avanos Medical on 10 of the 14 factors compared between the two stocks.
About Avanos Medical
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.
About Neogen
Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods. The segment offers its products primarily to milling and grain, meat and poultry, prepared foods and ingredients, fruits and vegetables, seafood, dairy, beverage, water, healthcare, traditional culture media markets, food service, and dietary supplements markets. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products, and genomics testing services marketed through veterinarians, retailers, livestock producers, and animal health product distributors, for the animal safety market. The segment offers its products for companion animal veterinarians; livestock producers, veterinarians, and breed associations; retailers; breeding and genetics companies; diagnostic labs and universities; distributors; and other manufacturers and government agencies. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.
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