Financial Survey: AVITA Medical (NASDAQ:RCEL) and RenovaCare (OTCMKTS:RCAR)

AVITA Medical (NASDAQ:RCEL) and RenovaCare (OTCMKTS:RCAR) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares AVITA Medical and RenovaCare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AVITA Medical	-88.41%	-84.07%	-47.63%
RenovaCare	N/A	N/A	N/A

Institutional and Insider Ownership

27.7% of AVITA Medical shares are held by institutional investors. 1.8% of AVITA Medical shares are held by company insiders. Comparatively, 0.9% of RenovaCare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares AVITA Medical and RenovaCare’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AVITA Medical	$54.14 million	4.45	-$35.38 million	($1.76)	-5.31
RenovaCare	N/A	N/A	-$4.47 million	N/A	N/A

RenovaCare has lower revenue, but higher earnings than AVITA Medical.

Risk and Volatility

AVITA Medical has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, RenovaCare has a beta of -99.34, meaning that its share price is 10,034% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AVITA Medical and RenovaCare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AVITA Medical	0	2	1	0	2.33
RenovaCare	0	0	0	0	N/A

AVITA Medical currently has a consensus target price of $15.00, indicating a potential upside of 60.60%.

Summary

AVITA Medical beats RenovaCare on 5 of the 9 factors compared between the two stocks.

About AVITA Medical

AVITA Medical, Inc., together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions. It develops RECELL GO to control the manual process of disaggregation, filtration, and soak time. The company was formerly known as AVITA Therapeutics, Inc. AVITA Medical, Inc. was incorporated in 2020 and is headquartered in Valencia, California.

About RenovaCare

RenovaCare, Inc., a development-stage biotech and medical device company, focuses on the research, development, and commercialization of autologous cellular therapies for use in medical and aesthetic applications. It is developing CellMist System, a treatment methodology for cell isolation for the regeneration of human skin cells; and SkinGun, a solution sprayer device for delivering the cells to the treatment area. RenovaCare, Inc. has a strategic collaboration StemCell Systems GmbH for isolating and spraying self-donated stem cells to regenerate tissues and organs. The company was formerly known as Janus Resources, Inc. and changed its name RenovaCare, Inc.,to RenovaCare, Inc. in January 2014. RenovaCare, Inc. was incorporated in 1983 and is based in Scottsdale, Arizona.