STAAR Surgical (NASDAQ: STAA) and Bio-Rad Laboratories (NYSE:BIO) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation and Earnings

This table compares STAAR Surgical and Bio-Rad Laboratories’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
STAAR Surgical $84.48 million 5.45 -$672,999.00 ($0.11) -101.82
Bio-Rad Laboratories $2.08 billion 3.25 $233.59 million $0.50 455.82

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for STAAR Surgical and Bio-Rad Laboratories, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STAAR Surgical 0 1 1 0 2.50
Bio-Rad Laboratories 0 0 4 0 3.00

STAAR Surgical currently has a consensus target price of $12.00, indicating a potential upside of 7.14%. Bio-Rad Laboratories has a consensus target price of $225.00, indicating a potential downside of 1.28%. Given STAAR Surgical’s higher possible upside, analysts clearly believe STAAR Surgical is more favorable than Bio-Rad Laboratories.

Insider and Institutional Ownership

76.5% of STAAR Surgical shares are owned by institutional investors. Comparatively, 62.9% of Bio-Rad Laboratories shares are owned by institutional investors. 5.6% of STAAR Surgical shares are owned by insiders. Comparatively, 28.3% of Bio-Rad Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

STAAR Surgical has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Bio-Rad Laboratories has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares STAAR Surgical and Bio-Rad Laboratories’ 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%
Bio-Rad Laboratories 0.73% 3.15% 2.13%

Summary

Bio-Rad Laboratories beats STAAR Surgical on 9 of the 13 factors compared between the two stocks.

STAAR Surgical Company Profile

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.

Bio-Rad Laboratories Company Profile

Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.

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