Analyzing Second Sight Medical Products (EYES) & HeartWare International (HTWR)
Second Sight Medical Products (NASDAQ: EYES) and HeartWare International (NASDAQ:HTWR) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
13.1% of Second Sight Medical Products shares are owned by institutional investors. 34.7% of Second Sight Medical Products 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.
This table compares Second Sight Medical Products and HeartWare International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Second Sight Medical Products||-646.89%||-168.49%||-129.48%|
Volatility and Risk
Second Sight Medical Products has a beta of 3.64, meaning that its stock price is 264% more volatile than the S&P 500. Comparatively, HeartWare International has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
Earnings and Valuation
This table compares Second Sight Medical Products and HeartWare International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Second Sight Medical Products||$5.14 million||12.60||-$32.85 million||($0.72)||-1.58|
HeartWare International has higher revenue, but lower earnings than Second Sight Medical Products. HeartWare International is trading at a lower price-to-earnings ratio than Second Sight Medical Products, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Second Sight Medical Products and HeartWare International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Second Sight Medical Products||0||0||1||0||3.00|
Second Sight Medical Products currently has a consensus price target of $5.00, suggesting a potential upside of 338.60%. Given Second Sight Medical Products’ higher possible upside, equities research analysts plainly believe Second Sight Medical Products is more favorable than HeartWare International.
Second Sight Medical Products beats HeartWare International on 7 of the 10 factors compared between the two stocks.
About Second Sight Medical Products
Second Sight Medical Products, Inc. is engaged in developing, manufacturing and marketing prosthetic devices that restore vision to blind individuals. The Company’s product, the Argus II System, treats outer retinal degenerations, such as retinitis pigmentosa (RP). The Argus II System provides an artificial form of vision that differs from the vision of people with normal sight. It does not restore normal vision and it does not slow or reverse the progression of the disease. The Company’s Argus II System employs electrical stimulation to bypass degenerated photoreceptor cells and to stimulate remaining viable retinal cells thereby inducing visual perception in blind individuals. The Argus II System works by converting video images captured by a miniature camera housed in a patient’s glasses into a series of small electrical pulses that are transmitted wirelessly to an array of electrodes that are implanted on the surface of the retina.
About HeartWare International
Heartware International, Inc. is a medical device company. The Company develops and manufactures miniaturized implantable heart pumps or ventricular assist devices to treat patients suffering from advanced heart failure. The Company operates in the segment of design and manufacture of medical devices. The HeartWare Ventricular Assist System (HVAD System), which includes a ventricular assist device (VAD) or blood pump, patient accessories and surgical tools, provides circulatory support for patients in the advanced stage of heart failure. The HVAD System is designed to be implanted adjacent to the heart, avoiding abdominal surgery. The HVAD System features the centrifugal pump designed to be implanted in the chest, directly adjacent to the heart. It develops MVAD System, a miniaturized device. The CircuLite Surgical System is designed to be implanted through a right, mini-thoracotomy procedure and does not require a sternotomy or cardiopulmonary bypass.
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