Lumenis (NASDAQ: LMNS) and Cutera (NASDAQ:CUTR) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitabiliy and earnings.

Earnings and Valuation

This table compares Lumenis and Cutera’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lumenis N/A N/A N/A N/A N/A
Cutera $124.93 million 3.00 $4.14 million $0.26 103.85

Cutera has higher revenue and earnings than Lumenis.

Profitability

This table compares Lumenis and Cutera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lumenis 2.40% 6.50% 2.39%
Cutera 2.89% 9.21% 6.05%

Analyst Recommendations

This is a summary of recent ratings and target prices for Lumenis and Cutera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumenis 0 0 0 0 N/A
Cutera 0 0 3 0 3.00

Cutera has a consensus target price of $32.33, suggesting a potential upside of 19.75%. Given Cutera’s higher probable upside, analysts clearly believe Cutera is more favorable than Lumenis.

Insider & Institutional Ownership

81.3% of Cutera shares are held by institutional investors. 11.6% of Cutera shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Cutera beats Lumenis on 8 of the 8 factors compared between the two stocks.

About Lumenis

Lumenis Ltd. (Lumenis) is a provider of energy-based, minimally invasive clinical solutions. The Company operates through three segments: surgical, ophthalmic and aesthetic. The Company offers energy-based solutions for medically necessary and elective procedures, primarily for the aging population. Its solutions include the holmium laser, the Lumenis Pulse 120H, used for urologic applications; the VersaPulse PowerSuite platform which uses holmium lasers for urologic applications; the M22 multi-energy, a multi-application platform for the treatment of various skin conditions, and the Selecta multi-modality platform for retinal, secondary cataract and glaucoma therapies. It offers products to hospitals, outpatient clinics, ambulatory surgery centers, physicians’ offices, private clinics and aesthetic chains. Its locations include Yokneam, Israel, where surgical and aesthetic products are manufactured, and Salt Lake City, Utah, where ophthalmic products are manufactured.

About Cutera

Cutera, Inc. is a medical device company. The Company is engaged in the design, development, manufacture, marketing and servicing of laser and other energy-based aesthetics systems for practitioners across the world. The Company offers products based on product platforms, such as enlighten, excel HR, truSculpt, excel V and xeo, each of which enables physicians and other practitioners to perform aesthetic procedures for customers. Each of its laser and other energy-based platforms consists of one or more hand pieces and a console that incorporates a universal graphical user interface, a laser or other energy-based module, control system software and high voltage electronics. The Company also offers products, such as CoolGlide that includes CV, Excel and Vantage; Solera that includes Titan S, ProWave 770, OPS 600, LP560, AcuTip 500, Titan V/XL and LimeLight, and a third-party sourced system, myQ for the Japanese market.

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