Contrasting AxoGen (NASDAQ:AXGN) & GigCapital5 (NYSE:GIA)

AxoGen (NASDAQ:AXGN) and GigCapital5 (NYSE:GIA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares AxoGen and GigCapital5’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AxoGen	-15.26%	-23.44%	-11.96%
GigCapital5	N/A	N/A	-14.85%

Institutional & Insider Ownership

83.8% of AxoGen shares are owned by institutional investors. Comparatively, 27.3% of GigCapital5 shares are owned by institutional investors. 7.2% of AxoGen shares are owned by insiders. Comparatively, 68.3% of GigCapital5 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares AxoGen and GigCapital5’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$138.58 million	1.83	-$28.95 million	($0.56)	-10.50
GigCapital5	N/A	N/A	-$2.77 million	N/A	N/A

GigCapital5 has lower revenue, but higher earnings than AxoGen.

Risk and Volatility

AxoGen has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, GigCapital5 has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for AxoGen and GigCapital5, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	0	0	4	0	3.00
GigCapital5	0	0	0	0	N/A

AxoGen currently has a consensus price target of $15.00, suggesting a potential upside of 155.10%. Given AxoGen’s higher possible upside, equities research analysts clearly believe AxoGen is more favorable than GigCapital5.

Summary

AxoGen beats GigCapital5 on 6 of the 10 factors compared between the two stocks.

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and markets technologies for peripheral nerve regeneration and repair worldwide. The company's products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; and AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.

About GigCapital5

GigCapital5, Inc. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in Palo Alto, California.