Comparing Echo Therapeutics (ECTE) & AxoGen (AXGN)

Echo Therapeutics (OTCMKTS:ECTE) and AxoGen (NASDAQ:AXGN) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Echo Therapeutics and AxoGen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Therapeutics 0 0 0 0 N/A
AxoGen 0 0 7 0 3.00

AxoGen has a consensus target price of $44.67, suggesting a potential upside of 22.37%. Given AxoGen’s higher probable upside, analysts plainly believe AxoGen is more favorable than Echo Therapeutics.

Insider & Institutional Ownership

82.8% of AxoGen shares are held by institutional investors. 7.0% of Echo Therapeutics shares are held by company insiders. Comparatively, 7.9% of AxoGen shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Echo Therapeutics and AxoGen’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echo Therapeutics N/A N/A -$22.19 million N/A N/A
AxoGen $60.43 million 23.15 -$10.44 million ($0.31) -117.74

AxoGen has higher revenue and earnings than Echo Therapeutics.

Profitability

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

Net Margins Return on Equity Return on Assets
Echo Therapeutics N/A N/A N/A
AxoGen -24.96% -26.50% -17.39%

Risk & Volatility

Echo Therapeutics has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, AxoGen has a beta of -0.39, meaning that its share price is 139% less volatile than the S&P 500.

Summary

AxoGen beats Echo Therapeutics on 6 of the 10 factors compared between the two stocks.

About Echo Therapeutics

Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.

About AxoGen

AxoGen, Inc. develops and markets surgical solutions for peripheral nerve injuries. The company's surgical 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 damaged 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 can be 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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