Critical Contrast: AtriCure (ATRC) & Haemonetics Corporation (HAE)

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

Earnings & Valuation

This table compares AtriCure and Haemonetics Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AtriCure $166.00 million 4.65 -$19.62 million ($1.01) -22.28
Haemonetics Corporation $887.11 million 2.73 $164.54 million $0.08 575.07

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

Profitability

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

Net Margins Return on Equity Return on Assets
AtriCure -19.56% -19.56% -11.91%
Haemonetics Corporation 0.48% 11.07% 6.54%

Institutional & Insider Ownership

82.1% of AtriCure shares are held by institutional investors. 10.0% of AtriCure shares are held by insiders. Comparatively, 1.2% of Haemonetics Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

AtriCure has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Haemonetics Corporation has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for AtriCure and Haemonetics Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 1 6 0 2.86
Haemonetics Corporation 1 3 3 0 2.29

AtriCure currently has a consensus target price of $25.83, indicating a potential upside of 14.81%. Haemonetics Corporation has a consensus target price of $41.17, indicating a potential downside of 10.51%. Given AtriCure’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AtriCure is more favorable than Haemonetics Corporation.

Summary

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

About AtriCure

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

About Haemonetics Corporation

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.

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