Critical Comparison: AVITA Medical (NASDAQ:RCEL) vs. KORU Medical Systems (NASDAQ:KRMD)

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

Profitability

This table compares AVITA Medical and KORU Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AVITA Medical	-92.04%	-118.27%	-52.75%
KORU Medical Systems	-38.16%	-20.82%	-15.02%

Earnings and Valuation

This table compares AVITA Medical and KORU Medical Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AVITA Medical	$54.14 million	5.07	-$35.38 million	($1.76)	-6.04
KORU Medical Systems	$28.52 million	4.20	-$13.74 million	($0.25)	-10.44

KORU Medical Systems has lower revenue, but higher earnings than AVITA Medical. KORU Medical Systems is trading at a lower price-to-earnings ratio than AVITA Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for AVITA Medical and KORU Medical Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AVITA Medical	0	2	1	0	2.33
KORU Medical Systems	0	0	2	1	3.33

AVITA Medical currently has a consensus target price of $15.00, indicating a potential upside of 41.11%. KORU Medical Systems has a consensus target price of $3.33, indicating a potential upside of 27.71%. Given AVITA Medical’s higher probable upside, equities analysts plainly believe AVITA Medical is more favorable than KORU Medical Systems.

Insider and Institutional Ownership

27.7% of AVITA Medical shares are held by institutional investors. Comparatively, 58.6% of KORU Medical Systems shares are held by institutional investors. 1.8% of AVITA Medical shares are held by insiders. Comparatively, 21.7% of KORU Medical Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

AVITA Medical has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, KORU Medical Systems has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Summary

KORU Medical Systems beats AVITA Medical on 10 of the 15 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 KORU Medical Systems

KORU Medical Systems, Inc. develops and manufactures medical devices and supplies in the United States and internationally. It offers the freedom infusion systems to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases, chronic inflammatory demyelinating polyneuropathy, and paroxysmal nocturnal hemoglobinuria. Its products include the FREEDOM60 syringe infusion system, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing products. The company was incorporated in 1980 and is based in Mahwah, New Jersey.