STAAR Surgical (NASDAQ: STAA) and OraSure Technologies (NASDAQ:OSUR) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitabiliy.

Insider and Institutional Ownership

75.7% of STAAR Surgical shares are held by institutional investors. Comparatively, 89.9% of OraSure Technologies shares are held by institutional investors. 5.6% of STAAR Surgical shares are held by insiders. Comparatively, 7.8% of OraSure Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

STAAR Surgical has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, OraSure Technologies has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for STAAR Surgical and OraSure Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STAAR Surgical 0 1 1 0 2.50
OraSure Technologies 0 1 5 0 2.83

STAAR Surgical presently has a consensus target price of $11.50, suggesting a potential upside of 10.58%. OraSure Technologies has a consensus target price of $15.04, suggesting a potential downside of 27.00%. Given STAAR Surgical’s higher probable upside, research analysts plainly believe STAAR Surgical is more favorable than OraSure Technologies.

Earnings & Valuation

This table compares STAAR Surgical and OraSure Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
STAAR Surgical $84.48 million 5.04 -$672,999.00 ($0.11) -94.55
OraSure Technologies $135.07 million 8.92 $23.80 million $0.54 38.16

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

Profitability

This table compares STAAR Surgical and OraSure Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STAAR Surgical -6.06% -8.69% -5.03%
OraSure Technologies 22.29% 15.64% 13.88%

Summary

OraSure Technologies beats STAAR Surgical on 12 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 OraSure Technologies

OraSure Technologies, Inc. (OraSure) is involved in the development, manufacture, marketing and sale of oral fluid diagnostic products and specimen collection devices using its technologies, as well as other diagnostic products, including immunoassays and other in vitro diagnostic tests that are used on other specimen types. The Company operates in two segments: OSUR and DNAG. OSUR consists of the development, manufacture and sale of diagnostic products, specimen collection devices, and medical devices. DNAG or molecular collection systems business consists primarily of the development, manufacture and sale of oral fluid collection devices that are used to collect, stabilize, and store samples of genetic material for molecular testing. It also manufactures and sells medical devices used for the removal of benign skin lesions by cryosurgery or freezing. It sells over-the-counter (OTC) cryosurgical products to consumers in North America, Europe, Central and South America, and Australia.

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