STAAR Surgical (NASDAQ: STAA) and Intersect ENT (NASDAQ:XENT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

77.5% of STAAR Surgical shares are held by institutional investors. Comparatively, 87.2% of Intersect ENT shares are held by institutional investors. 5.6% of STAAR Surgical shares are held by insiders. Comparatively, 13.7% of Intersect ENT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares STAAR Surgical and Intersect ENT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
STAAR Surgical $82.43 million 8.31 -$12.12 million ($0.04) -416.25
Intersect ENT $78.71 million 11.23 -$25.22 million ($0.62) -48.39

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

Analyst Recommendations

This is a summary of current recommendations and price targets for STAAR Surgical and Intersect ENT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STAAR Surgical 0 0 2 0 3.00
Intersect ENT 0 2 7 0 2.78

STAAR Surgical currently has a consensus price target of $20.50, indicating a potential upside of 23.12%. Intersect ENT has a consensus price target of $30.57, indicating a potential upside of 1.90%. Given STAAR Surgical’s stronger consensus rating and higher probable upside, research analysts plainly believe STAAR Surgical is more favorable than Intersect ENT.

Risk & Volatility

STAAR Surgical has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Intersect ENT has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares STAAR Surgical and Intersect ENT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STAAR Surgical -2.47% -3.34% -1.93%
Intersect ENT -19.81% -15.96% -14.16%

Summary

STAAR Surgical beats Intersect ENT on 9 of the 13 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.

About Intersect ENT

Intersect ENT, Inc. is a commercial-stage drug-device company. The Company develops drugs for patients with ear, nose and throat (ENT) conditions. The Company has developed a drug releasing bioabsorbable implant technology that enables targeted and sustained release of therapeutic agents. This targeted drug delivery technology is designed to allow ENT physicians to manage patient care. The Company’s commercial products are the PROPEL and PROPEL mini drug-releasing implants for patients undergoing sinus surgery to treat chronic sinusitis. The Company is building a portfolio of products based on its drug releasing bio-absorbable implant technology that are designed to provide localized drug delivery to treat patients across the continuum of care in chronic sinusitis. The Company markets PROPEL, which is indicated for use following ethmoid sinus surgery, and PROPEL Mini, which is indicated for use following ethmoid and/or frontal sinus surgery.

Receive News & Stock Ratings for STAAR Surgical Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for STAAR Surgical Company and related stocks with our FREE daily email newsletter.