AxoGen (NASDAQ:AXGN) versus TearLab (OTCMKTS:TEAR) Head-To-Head Review
by Kim Johansen · The Markets DailyAxoGen (NASDAQ:AXGN – Get Free Report) and TearLab (OTCMKTS:TEAR – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Profitability
This table compares AxoGen and TearLab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AxoGen | -6.97% | -13.44% | -7.48% |
| TearLab | N/A | N/A | N/A |
Institutional & Insider Ownership
80.3% of AxoGen shares are held by institutional investors. 2.8% of AxoGen shares are held by company insiders. Comparatively, 5.2% of TearLab shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares AxoGen and TearLab”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AxoGen | $225.21 million | 7.21 | -$15.70 million | ($0.34) | -92.00 |
| TearLab | N/A | N/A | N/A | N/A | N/A |
TearLab has lower revenue, but higher earnings than AxoGen.
Analyst Recommendations
This is a breakdown of current recommendations for AxoGen and TearLab, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AxoGen | 1 | 0 | 9 | 0 | 2.80 |
| TearLab | 0 | 0 | 0 | 0 | 0.00 |
AxoGen currently has a consensus price target of $39.38, suggesting a potential upside of 25.88%. Given AxoGen’s stronger consensus rating and higher probable upside, research analysts clearly believe AxoGen is more favorable than TearLab.
Summary
AxoGen beats TearLab on 5 of the 9 factors compared between the two stocks.
About AxoGen
AxoGen, Inc., together with its subsidiaries, develops and commercializes 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; 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; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. 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 TearLab
TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally. It offers TearLab Osmolority System, a proprietary in vitro diagnostic tear testing platform that measures tear film osmolarity for the diagnosis of dry eye disease; and enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. Its TearLab Osmolarity System consists of TearLab disposable, a single-use microfluidic microchip; TearLab pen, a hand-held device that interfaces with the TearLab disposable; and TearLab reader, a small desktop unit that allows for the docking of the TearLab pen, as well as provides a quantitative reading for the operator. The company was formerly known as OccuLogix, Inc. TearLab Corporation was founded in 1996 and is headquartered in San Diego, California.