Financial Analysis: Avita Medical (NASDAQ:RCEL) versus Indaptus Therapeutics (NASDAQ:INDP)
by Danessa Lincoln · The Markets DailyAvita Medical (NASDAQ:RCEL – Get Free Report) and Indaptus Therapeutics (NASDAQ:INDP – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Institutional and Insider Ownership
27.7% of Avita Medical shares are held by institutional investors. Comparatively, 7.1% of Indaptus Therapeutics shares are held by institutional investors. 2.8% of Avita Medical shares are held by company insiders. Comparatively, 23.6% of Indaptus Therapeutics shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Avita Medical and Indaptus Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avita Medical | 1 | 2 | 4 | 0 | 2.43 |
| Indaptus Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
Avita Medical currently has a consensus target price of $7.25, indicating a potential upside of 54.09%. Given Avita Medical’s stronger consensus rating and higher probable upside, equities analysts clearly believe Avita Medical is more favorable than Indaptus Therapeutics.
Profitability
This table compares Avita Medical and Indaptus Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avita Medical | -62.67% | N/A | -78.92% |
| Indaptus Therapeutics | N/A | -1,030.07% | -299.69% |
Risk & Volatility
Avita Medical has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Indaptus Therapeutics has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Valuation & Earnings
This table compares Avita Medical and Indaptus Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avita Medical | $71.61 million | 2.02 | -$48.59 million | ($1.57) | -3.00 |
| Indaptus Therapeutics | N/A | N/A | -$20.85 million | ($15.40) | -0.16 |
Indaptus Therapeutics has lower revenue, but higher earnings than Avita Medical. Avita Medical is trading at a lower price-to-earnings ratio than Indaptus Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Avita Medical beats Indaptus Therapeutics on 9 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 Indaptus Therapeutics
Indaptus Therapeutics, Inc., a clinical biotechnology company, develops various anti-cancer and anti-viral immunotherapy products. Its lead clinical candidate is Decoy20 used to produce single agent activity and/or combination therapy-based durable responses of lymphoma, hepatocellular, colorectal, and pancreatic tumors, and chronic hepatitis B virus, and human immunodeficiency virus infection, which is in Phase 2 clinical trial. The company was formerly known as Intec Parent, Inc. and changed its name to Indaptus Therapeutics, Inc. in August 2021. Indaptus Therapeutics, Inc. is headquartered in New York, New York.