Avinger (NASDAQ: AVGR) and Novadaq Technologies (NASDAQ:NVDQ) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitabiliy, institutional ownership, risk and valuation.

Volatility & Risk

Avinger has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500. Comparatively, Novadaq Technologies has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Avinger and Novadaq Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avinger $18.17 million 0.62 -$47.92 million ($3.01) -0.16
Novadaq Technologies $83.42 million 4.16 -$47.39 million ($1.04) -5.77

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

Profitability

This table compares Avinger and Novadaq Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avinger -304.43% -2,432.46% -115.58%
Novadaq Technologies -71.97% -49.93% -41.47%

Institutional & Insider Ownership

61.1% of Avinger shares are held by institutional investors. Comparatively, 88.3% of Novadaq Technologies shares are held by institutional investors. 30.5% of Avinger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Avinger and Novadaq Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avinger 0 3 2 0 2.40
Novadaq Technologies 0 4 8 0 2.67

Avinger presently has a consensus target price of $5.33, indicating a potential upside of 1,031.86%. Novadaq Technologies has a consensus target price of $11.43, indicating a potential upside of 90.48%. Given Avinger’s higher possible upside, equities research analysts clearly believe Avinger is more favorable than Novadaq Technologies.

Summary

Novadaq Technologies beats Avinger on 11 of the 13 factors compared between the two stocks.

About Avinger

Avinger, Inc. is a commercial-stage medical device company. The Company designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral arterial disease (PAD). The Company focuses on introducing products based on its lumivascular platform, which is an intravascular image-guided system. The Company manufactures and sells a suite of products in the United States and certain European markets. The Company’s products include Lightbox imaging console, as well as its Wildcat, Kittycat and the Ocelot family of catheters, which are designed to allow physicians to penetrate a total blockage in an artery, known as a chronic total occlusion (CTO). The lumivascular platform offers real-time visualization of the inside of the artery during PAD treatment. The lumivascular platform consists of a capital component Lightbox and a range of disposable catheter products, including Ocelot, Ocelot PIXL, Ocelot MVRX and Pantheris.

About Novadaq Technologies

NOVADAQ Technologies Inc. is a medical device company. The Company primarily develops, manufactures and markets real-time fluorescence imaging products that are designed for use by surgeons in the operating room and other clinical settings where open and minimally invasive surgery or interventional procedures are performed. The Company’s SPY fluorescence imaging technology platform (SPY Fluorescence Imaging) provides clinically relevant anatomic and physiologic images of blood flow in vessels and micro-vessels during a range of surgical and outpatient procedures performed in the operating room or clinic. The SPY Fluorescence Imaging platform can be used to develop imaging devices specifically designed to meet the needs of different surgeons and other healthcare providers and the specialty procedures they perform. SPY images enable physicians treating life-threatening illnesses, such as breast, head and neck, colon, complex hernias, diabetes and certain cardiovascular diseases.

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