Financial Review: Orthofix Medical (NASDAQ:OFIX) and Axonics (NASDAQ:AXNX)

Orthofix Medical (NASDAQ:OFIX) and Axonics (NASDAQ:AXNX) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Orthofix Medical and Axonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orthofix Medical	-16.64%	-14.24%	-9.49%
Axonics	-4.12%	-2.58%	-2.32%

Risk and Volatility

Orthofix Medical has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Axonics has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

89.8% of Orthofix Medical shares are owned by institutional investors. Comparatively, 99.5% of Axonics shares are owned by institutional investors. 4.7% of Orthofix Medical shares are owned by company insiders. Comparatively, 1.9% of Axonics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Orthofix Medical and Axonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orthofix Medical	0	3	2	0	2.40
Axonics	0	8	2	0	2.20

Orthofix Medical presently has a consensus price target of $18.00, suggesting a potential upside of 9.02%. Axonics has a consensus price target of $69.57, suggesting a potential upside of 1.58%. Given Orthofix Medical’s stronger consensus rating and higher probable upside, equities analysts clearly believe Orthofix Medical is more favorable than Axonics.

Earnings & Valuation

This table compares Orthofix Medical and Axonics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orthofix Medical	$746.64 million	0.83	-$151.40 million	($3.38)	-4.88
Axonics	$366.38 million	9.54	-$6.09 million	($0.32)	-214.03

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

Summary

Axonics beats Orthofix Medical on 7 of the 13 factors compared between the two stocks.

About Orthofix Medical

Orthofix Medical Inc. operates as a spine and orthopedics company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices for enhance of bone fusion, including adjunctive and noninvasive treatment of cervical and lumbar spine, as well as a therapeutic treatment for non-spine; designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, and synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal and orthopedic conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations. The Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

About Axonics

Axonics, Inc., a medical technology company, engages in the development and commercialization of novel products for the treatment of bladder and bowel dysfunction. Its sacral neuromodulation (SNM) systems are used to treat patients with overactive bladder (OAB), including urinary urge incontinence and urinary urgency frequency, as well as fecal incontinence (FI) and non-obstructive urinary retention (UR); and rechargeable (R20) and recharge-free (F15) implantable SNM systems that delivers mild electrical pulses to the targeted sacral nerve to restore normal communication to and from the brain to reduce the symptoms of OAB, UR, and FI. The company also offers Bulkamid, a urethral bulking agent to treat female stress urinary incontinence. It sells its products through a direct sales force and distributors in the United States, the United Kingdom, Germany, the Netherlands, Nordic countries, and internationally. The company was formerly known as Axonics Modulation Technologies, Inc. and changed its name to Axonics, Inc. in March 2021. Axonics, Inc. was incorporated in 2012 and is based in Irvine, California.