AVITA Medical (NASDAQ:RCEL) versus Inari Medical (NASDAQ:NARI) Critical Survey

AVITA Medical (NASDAQ:RCEL) and Inari Medical (NASDAQ:NARI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for AVITA Medical and Inari Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AVITA Medical	0	1	3	0	2.75
Inari Medical	0	12	2	0	2.14

AVITA Medical presently has a consensus price target of $17.25, indicating a potential upside of 146.08%. Inari Medical has a consensus price target of $69.22, indicating a potential downside of 13.44%. Given AVITA Medical’s stronger consensus rating and higher probable upside, analysts clearly believe AVITA Medical is more favorable than Inari Medical.

Volatility and Risk

AVITA Medical has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Inari Medical has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Institutional & Insider Ownership

27.7% of AVITA Medical shares are owned by institutional investors. Comparatively, 91.0% of Inari Medical shares are owned by institutional investors. 1.8% of AVITA Medical shares are owned by insiders. Comparatively, 10.6% of Inari Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AVITA Medical	-96.26%	-337.91%	-71.50%
Inari Medical	-13.68%	-10.09%	-6.60%

Earnings and Valuation

This table compares AVITA Medical and Inari Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AVITA Medical	$71.66 million	2.59	-$61.85 million	($2.19)	-3.20
Inari Medical	$493.63 million	9.48	-$1.64 million	($1.35)	-59.24

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

Summary

Inari Medical beats AVITA Medical on 9 of the 14 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 Inari Medical

Inari Medical, Inc. builds minimally invasive, novel, and catheter-based mechanical thrombectomy devices and accessories for the specific disease states in the United States. The company provides ClotTriever system, which is designed to core, capture, and remove large clots from large vessels for treatment of deep vein thrombosis and peripheral thrombus; FlowTriever system, a large bore catheter-based aspiration and mechanical thrombectomy system to remove large clots from large vessels in the peripheral vasculature for treating pulmonary embolism and other complex venous thromboembolism cases; InThrill system to treat small vessel thrombosis; and LimFlow system for patients who have chronic limb-threatening ischemia with no suitable endovascular or surgical revascularization options and risk of major amputation. It serves interventional radiologists, interventional cardiologists, and vascular surgeons. The company was formerly known as Inceptus Newco1 Inc. and changed its name to Inari Medical, Inc. in September 2013. Inari Medical, Inc. was incorporated in 2011 and is headquartered in Irvine, California.