Head-To-Head Analysis: Minerva Neurosciences (NASDAQ:NERV) vs. Avita Medical (NASDAQ:RCEL)

Avita Medical (NASDAQ:RCEL) and Minerva Neurosciences (NASDAQ:NERV) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation & Earnings

This table compares Avita Medical and Minerva Neurosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avita Medical	$64.25 million	1.86	-$61.85 million	($1.81)	-2.16
Minerva Neurosciences	N/A	N/A	$1.44 million	($1.85)	-2.04

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

Analyst Recommendations

This is a breakdown of recent recommendations for Avita Medical and Minerva Neurosciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avita Medical	2	2	2	0	2.00
Minerva Neurosciences	1	1	0	0	1.50

Avita Medical presently has a consensus target price of $10.50, indicating a potential upside of 168.54%. Minerva Neurosciences has a consensus target price of $4.00, indicating a potential upside of 5.82%. Given Avita Medical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Avita Medical is more favorable than Minerva Neurosciences.

Profitability

This table compares Avita Medical and Minerva Neurosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avita Medical	-67.07%	-632.62%	-71.64%
Minerva Neurosciences	N/A	-41.35%	-43.68%

Risk and Volatility

Avita Medical has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Minerva Neurosciences has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.

Institutional and Insider Ownership

27.7% of Avita Medical shares are owned by institutional investors. Comparatively, 34.6% of Minerva Neurosciences shares are owned by institutional investors. 2.8% of Avita Medical shares are owned by company insiders. Comparatively, 8.6% of Minerva Neurosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Minerva Neurosciences beats Avita Medical on 7 of the 13 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 Minerva Neurosciences

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of product candidates for the treatment of central nervous system diseases. Its lead product candidate is roluperidone (MIN-101) for the treatment of negative symptoms in patients with schizophrenia, currently submitted an New Drug Application (NDA); and MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson's disease and other neurodegenerative disorders. The company has a license agreement with Mitsubishi Tanabe Pharma Corporation to develop, sell, and import roluperidone globally excluding Asia. Minerva Neurosciences, Inc. was incorporated in 2007 and is based in Burlington, Massachusetts.