Analyzing Avita Medical (NASDAQ:RCEL) and China SXT Pharmaceuticals (NASDAQ:SXTC)

China SXT Pharmaceuticals (NASDAQ:SXTC) and Avita Medical (NASDAQ:RCEL) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Volatility & Risk

China SXT Pharmaceuticals has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Avita Medical has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares China SXT Pharmaceuticals and Avita Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China SXT Pharmaceuticals	N/A	N/A	N/A
Avita Medical	-67.07%	N/A	-71.64%

Valuation and Earnings

This table compares China SXT Pharmaceuticals and Avita Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China SXT Pharmaceuticals	$1.74 million	6.33	-$3.30 million	N/A	N/A
Avita Medical	$64.25 million	1.85	-$61.85 million	($1.81)	-2.15

China SXT Pharmaceuticals has higher earnings, but lower revenue than Avita Medical.

Institutional & Insider Ownership

5.0% of China SXT Pharmaceuticals shares are owned by institutional investors. Comparatively, 27.7% of Avita Medical shares are owned by institutional investors. 4.0% of China SXT Pharmaceuticals shares are owned by company insiders. Comparatively, 2.8% of Avita Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for China SXT Pharmaceuticals and Avita Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China SXT Pharmaceuticals	1	0	0	0	1.00
Avita Medical	1	3	1	0	2.00

Avita Medical has a consensus target price of $5.50, indicating a potential upside of 41.03%. Given Avita Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Avita Medical is more favorable than China SXT Pharmaceuticals.

Summary

Avita Medical beats China SXT Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About China SXT Pharmaceuticals

China SXT Pharmaceuticals, Inc., a pharmaceutical company, engages in the research, development, manufacture, marketing, and sale of traditional Chinese medicine pieces (TCMP) in China. The company offers advanced, fine, and regular TCMP products, and raw medicinal material, such as ChenXiang, SanQiFen, HongQi, SuMu, JiangXiang, CuYanHuSuo, XiaTianWu, LuXueJing, XueJie, ChaoSuanZaoRen, HongQuMi, ChuanBeiMu, HuangShuKuiHua, WuWeiZi, DingXiang, RenShen, QingGuo, JueMingZi, and ShaRen. It provides its products under the Suxuantang, Hui Chun Tang, and Tong Ren Tang brands. The company had an end-customer base of pharmaceutical companies, chain pharmacies, and hospitals in 10 provinces and municipalities in China. China SXT Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Taizhou, China.

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.