Presbia (LENS) vs. Cerner (CERN) Critical Analysis

Presbia (NASDAQ: LENS) and Cerner (NASDAQ:CERN) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Presbia has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Cerner has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Valuation & Earnings

This table compares Presbia and Cerner’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Presbia $10,000.00 6,090.78 -$15.75 million ($1.20) -2.96
Cerner $4.80 billion 4.75 $636.48 million $2.01 34.13

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Presbia and Cerner, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presbia 0 0 3 0 3.00
Cerner 0 14 8 0 2.36

Presbia currently has a consensus target price of $9.67, suggesting a potential upside of 171.71%. Cerner has a consensus target price of $69.76, suggesting a potential upside of 1.70%. Given Presbia’s stronger consensus rating and higher probable upside, research analysts plainly believe Presbia is more favorable than Cerner.

Insider & Institutional Ownership

16.1% of Presbia shares are held by institutional investors. Comparatively, 81.9% of Cerner shares are held by institutional investors. 74.7% of Presbia shares are held by company insiders. Comparatively, 13.1% of Cerner shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Presbia and Cerner’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presbia N/A -173.64% -137.41%
Cerner 13.90% 15.96% 11.58%

Summary

Cerner beats Presbia on 10 of the 14 factors compared between the two stocks.

Presbia Company Profile

Presbia PLC is an ophthalmic device company. The Company develops and markets an optical lens implant for treating presbyopia, the age-related loss of the ability to focus on near objects. The Company’s segment is the restoration of clear vision caused by presbyopia. The Company provides the refractive lens for patient surgeries and accessories for procedures performed exclusively outside the United States. The Company’s lens, referred to as the microlens, is a miniature lens designed to be surgically implanted in a patient’s eye to improve that patient’s ability to see objects at close distances. The microlens is a disc shaped lens that has a refractive zone in the periphery designed to improve near vision problems associated with presbyopia and a central zone that is designed to improve distance vision. The Company’s solution is a standalone solution for plano presbyopes, or those individuals suffering from presbyopia but do not have any other visual disorders.

Cerner Company Profile

Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, the Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The Company’s solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform.

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