Integer (ITGR) and AxoGen (AXGN) Critical Review

Integer (NYSE: ITGR) and AxoGen (NASDAQ:AXGN) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

95.0% of Integer shares are held by institutional investors. Comparatively, 66.0% of AxoGen shares are held by institutional investors. 4.8% of Integer shares are held by company insiders. Comparatively, 9.3% of AxoGen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Integer $1.39 billion 1.07 $5.96 million $0.64 73.05
AxoGen $41.11 million 22.39 -$14.41 million ($0.42) -64.29

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

Profitability

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

Net Margins Return on Equity Return on Assets
Integer 1.42% 11.22% 3.03%
AxoGen -24.74% -91.00% -25.48%

Risk & Volatility

Integer has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, AxoGen has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Integer and AxoGen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integer 0 3 1 0 2.25
AxoGen 0 0 6 0 3.00

Integer presently has a consensus target price of $51.00, suggesting a potential upside of 9.09%. AxoGen has a consensus target price of $26.17, suggesting a potential downside of 3.09%. Given Integer’s higher probable upside, analysts clearly believe Integer is more favorable than AxoGen.

Summary

Integer beats AxoGen on 9 of the 13 factors compared between the two stocks.

Integer Company Profile

Greatbatch, Inc. is a developer and manufacturer of medical devices and components. The Company operates through two segments: Greatbatch Medical and QiG Group (QiG). Greatbatch Medical designs and manufactures products where the Company either owns the intellectual property or has unique manufacturing and assembly expertise. Greatbatch Medical’s products include medical devices and components for the cardiac, neuromodulation, orthopedics, portable medical, vascular and energy markets. QiG focuses on developing medical device systems for some of healthcare’s challenges and reflects the Company’s strategic evolution of its product offerings in order to raise the growth and profitability profile of the Company. QiG utilizes a diversified portfolio approach with three investment modes: new medical device systems commercialization, collaborative programs with OEM customers and strategic equity positions in emerging healthcare companies.

AxoGen Company Profile

AxoGen, Inc. provides surgical solutions for peripheral nerve injuries. The company’s surgical nerve repair 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 injured 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 is 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.

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