Analyzing Avitar (OTCMKTS:AVTI) & ReWalk Robotics (NASDAQ:LFWD)

Avitar (OTCMKTS:AVTI) and ReWalk Robotics (NASDAQ:LFWD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

26.8% of ReWalk Robotics shares are held by institutional investors. 7.4% of Avitar shares are held by company insiders. Comparatively, 2.1% of ReWalk Robotics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Avitar and ReWalk Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avitar	0	0	0	0	N/A
ReWalk Robotics	0	0	1	1	3.50

ReWalk Robotics has a consensus target price of $13.00, suggesting a potential upside of 322.08%. Given ReWalk Robotics’ higher possible upside, analysts clearly believe ReWalk Robotics is more favorable than Avitar.

Earnings and Valuation

This table compares Avitar and ReWalk Robotics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avitar	N/A	N/A	N/A	N/A	N/A
ReWalk Robotics	$13.85 million	1.95	-$22.13 million	($3.11)	-0.99

Avitar has higher earnings, but lower revenue than ReWalk Robotics.

Risk & Volatility

Avitar has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, ReWalk Robotics has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Profitability

This table compares Avitar and ReWalk Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avitar	N/A	N/A	N/A
ReWalk Robotics	-102.03%	-41.89%	-30.83%

Summary

ReWalk Robotics beats Avitar on 6 of the 10 factors compared between the two stocks.

About Avitar

Avitar, Inc. is a holding company which through its subsidiaries designs, develops, manufactures, and markets diagnostic test products and proprietary hydrophilic polyurethane foam disposables for medical, diagnostics, dental, and consumer applications in the United States. It offers ORALscreen 4 and ORALscreen DRUGOMETER, the oral fluid-based onsite assay systems, for detecting drugs of abuse, such as opiates, including heroin, morphine, codeine, and synthetic opiates comprising oxycocone-oxycontin, percoset, and hydrocodone-vicodin; cocaine such as crack; marijuana; and methamphetamines, including meth and ecstasy. The company also provides foam disposable products including medical-grade hydrophilic polyurethane foam disposables such as wound dressings comprising Hydrasorb, a wound dressing product for exudating wounds; and various custom foam products comprising a sinus dressing and a device used by astronauts for relieving ear pressure while in a pressurized space suit. In addition, it develops specialty wound dressings for the cardiac catheter lab market, as well as the Illizarov Dressing used for dressing external bone fixators in orthopedic procedures. The company markets its products and services to employers, diagnostic test distributors, medical supply companies, governmental agencies, schools, and corporations through direct sales force and strategic partners, as well as through a network of distributors. Avitar, Inc. was founded in 1986 and is based in Canton, Massachusetts with Additional office in Calgary, Canada.

About ReWalk Robotics

ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. It offers ReWalk personal exoskeleton and rehabilitation exoskeleton devices; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke; AlterG Anti-Gravity System for use in physical and neurological rehabilitation and athletic training; MyoCycle devices; and ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke. The company markets and sells its products directly to institutions and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was incorporated in 2001 and is headquartered in Yokneam Illit, Israel.