STAAR Surgical (NASDAQ: STAA) and Baxter International (NYSE:BAX) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. STAAR Surgical does not pay a dividend. Baxter International pays out 34.4% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares STAAR Surgical and Baxter International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STAAR Surgical||$82.43 million||8.34||-$12.12 million||($0.04)||-417.50|
|Baxter International||$10.16 billion||3.42||$4.97 billion||$1.86||34.26|
Baxter International has higher revenue and earnings than STAAR Surgical. STAAR Surgical is trading at a lower price-to-earnings ratio than Baxter International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
STAAR Surgical has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
This table compares STAAR Surgical and Baxter International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for STAAR Surgical and Baxter International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
STAAR Surgical currently has a consensus price target of $20.50, indicating a potential upside of 22.75%. Baxter International has a consensus price target of $67.55, indicating a potential upside of 6.00%. Given STAAR Surgical’s stronger consensus rating and higher probable upside, research analysts plainly believe STAAR Surgical is more favorable than Baxter International.
Insider & Institutional Ownership
77.7% of STAAR Surgical shares are held by institutional investors. Comparatively, 83.6% of Baxter International shares are held by institutional investors. 5.6% of STAAR Surgical shares are held by insiders. Comparatively, 0.1% of Baxter International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Baxter International beats STAAR Surgical on 10 of the 16 factors compared between the two stocks.
About STAAR Surgical
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.
About Baxter International
Baxter International Inc., through its subsidiaries, provides renal and hospital products. The Company operates through two segments: Hospital Products and Renal. Its Hospital Products business manufactures sterile intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, parenteral nutrition therapies, infusion pumps, inhalation anesthetics and biosurgery products. The Renal business offers a portfolio to meet the needs of patients with end-stage renal disease, or irreversible kidney disease and acute kidney injuries, including technologies and therapies for peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapy (CRRT) and additional dialysis services. Its products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices and by patients at home under physician supervision.
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