Haemonetics Corporation (HAE) versus STAAR Surgical (STAA) Critical Analysis

Haemonetics Corporation (NYSE: HAE) and STAAR Surgical (NASDAQ:STAA) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Haemonetics Corporation and STAAR Surgical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Haemonetics Corporation $887.11 million 2.75 $164.54 million $0.08 578.95
STAAR Surgical $84.48 million 6.67 -$672,999.00 ($0.11) -124.55

Haemonetics Corporation has higher revenue and earnings than STAAR Surgical. STAAR Surgical is trading at a lower price-to-earnings ratio than Haemonetics Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

76.5% of STAAR Surgical shares are owned by institutional investors. 1.2% of Haemonetics Corporation shares are owned by company insiders. Comparatively, 5.6% of STAAR Surgical 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.

Risk & Volatility

Haemonetics Corporation has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Haemonetics Corporation and STAAR Surgical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Haemonetics Corporation 1 3 3 0 2.29
STAAR Surgical 0 0 2 0 3.00

Haemonetics Corporation presently has a consensus price target of $41.17, indicating a potential downside of 11.11%. STAAR Surgical has a consensus price target of $14.00, indicating a potential upside of 2.19%. Given STAAR Surgical’s stronger consensus rating and higher possible upside, analysts plainly believe STAAR Surgical is more favorable than Haemonetics Corporation.

Profitability

This table compares Haemonetics Corporation and STAAR Surgical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Haemonetics Corporation 0.48% 11.07% 6.54%
STAAR Surgical -6.06% -8.69% -5.03%

Summary

Haemonetics Corporation beats STAAR Surgical on 7 of the 13 factors compared between the two stocks.

Haemonetics Corporation Company Profile

Haemonetics Corporation (Haemonetics) is a healthcare company. The Company provides various products to customers involved in the processing, handling and analysis of blood. The Company’s segments include Japan, EMEA, North America Plasma and All Other. Haemonetics provides plasma collection systems and software, which enable plasma fractionators to make pharmaceuticals. The Company enables plasma collection customers to source from it a range of products necessary for plasma collection and storage, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, such as saline. Haemonetics offers automated blood component and manual whole blood collection systems to blood collection centers to collect blood products. The Company offers a range of blood management solutions. The Company has a suite of integrated software solutions, which include solutions for blood drive planning and blood collection.

STAAR Surgical Company Profile

STAAR Surgical Company designs, develops, manufactures and sells implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. It operates in the ophthalmic surgical market segment. Its principal products are intraocular lenses used in cataract surgery and implantable collamer lenses used in refractive surgery. It makes lenses used across the world in corrective or refractive surgery, and makes lenses for use in surgery that treats cataracts. Its refractive surgery corrects the types of visual disorders that glasses or contact lenses have treated (myopia, hyperopia, astigmatism and presbyopia). Its refractive surgery corrects the types of visual disorders that glasses or contact lenses have treated (myopia, hyperopia, astigmatism and presbyopia). As of December 30, 2016, it sold its products in more than 60 countries, with direct distribution in the United States, Canada, Japan and Spain, and independent distribution in the remainder of the world.

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