Head-To-Head Comparison: Tandem Diabetes Care (TNDM) vs. STAAR Surgical (NASDAQ:STAA)

STAAR Surgical (NASDAQ: STAA) and Tandem Diabetes Care (NASDAQ:TNDM) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for STAAR Surgical and Tandem Diabetes Care, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STAAR Surgical 0 0 2 0 3.00
Tandem Diabetes Care 0 4 2 0 2.33

STAAR Surgical presently has a consensus price target of $20.50, indicating a potential upside of 26.54%. Tandem Diabetes Care has a consensus price target of $13.00, indicating a potential upside of 301.23%. Given Tandem Diabetes Care’s higher probable upside, analysts plainly believe Tandem Diabetes Care is more favorable than STAAR Surgical.

Valuation and Earnings

This table compares STAAR Surgical and Tandem Diabetes Care’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STAAR Surgical $82.43 million 8.09 -$12.12 million ($0.05) -324.00
Tandem Diabetes Care $84.25 million 0.39 -$83.44 million ($19.71) -0.16

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

Insider and Institutional Ownership

77.7% of STAAR Surgical shares are owned by institutional investors. 3.4% of STAAR Surgical shares are owned by insiders. Comparatively, 20.9% of Tandem Diabetes Care shares are owned 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.

Risk and Volatility

STAAR Surgical has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares STAAR Surgical and Tandem Diabetes Care’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STAAR Surgical -2.47% -3.34% -1.93%
Tandem Diabetes Care -79.45% N/A -74.29%

Summary

STAAR Surgical beats Tandem Diabetes Care on 8 of the 13 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 Tandem Diabetes Care

Tandem Diabetes Care, Inc. is a medical device company. The Company is engaged in designing, developing and commercializing products for people with insulin-dependent diabetes. The Company manufactures and sells three insulin pump products, which include t:slim Insulin Delivery System (t:slim), t:flex Insulin Delivery System (t:flex) and t:slim G4 Insulin Delivery System (t:slim G4). Its technology platform features Micro-Delivery Technology, a miniaturized pumping mechanism, which draws insulin from a flexible bag within the pump’s cartridge rather than relying on a syringe and plunger mechanism. It also features a software, which is a vivid color touch screen and a micro- universal serial bus (USB) connection that supports both a rechargeable battery and uploads to t:connect Diabetes Management Application (t:connect), its custom cloud-based data management application that provides display therapy management data from the pump and supported blood glucose meters.

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