STAAR Surgical (NASDAQ: STAA) and Steris (NYSE:STE) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Risk & Volatility
STAAR Surgical has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Steris has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
This table compares STAAR Surgical and Steris’ 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 price targets for STAAR Surgical and Steris, 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, suggesting a potential upside of 33.99%. Steris has a consensus price target of $72.33, suggesting a potential downside of 20.16%. Given STAAR Surgical’s stronger consensus rating and higher probable upside, research analysts clearly believe STAAR Surgical is more favorable than Steris.
Earnings & Valuation
This table compares STAAR Surgical and Steris’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STAAR Surgical||$82.43 million||7.64||-$12.12 million||($0.04)||-382.50|
|Steris||$2.61 billion||2.95||$109.96 million||$1.67||54.25|
Steris has higher revenue and earnings than STAAR Surgical. STAAR Surgical is trading at a lower price-to-earnings ratio than Steris, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.8% of STAAR Surgical shares are held by institutional investors. Comparatively, 89.5% of Steris shares are held by institutional investors. 5.6% of STAAR Surgical shares are held by insiders. Comparatively, 2.6% of Steris 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.
Steris pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. STAAR Surgical does not pay a dividend. Steris pays out 74.3% of its earnings in the form of a dividend. Steris has increased its dividend for 8 consecutive years.
Steris 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.
STERIS plc provides infection prevention and other procedural products and services. The Company operates through four segments: Healthcare Products, which offers infection prevention and procedural solutions for healthcare providers, including capital equipment and related maintenance, and installation services, as well as consumables; Healthcare Specialty Services, which provides a range of specialty services for healthcare providers, including hospital sterilization services, instrument and scope repairs, and linen management; Life Sciences, which offers capital equipment and consumable products, and equipment maintenance and specialty services for pharmaceutical manufacturers and research facilities, and Applied Sterilization Technologies, which offers contract sterilization and laboratory services for medical device and pharmaceutical customers and others. Its Corporate and other segment includes the Defense and Industrial business unit.
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