K2M Group (NASDAQ: KTWO) and Haemonetics (NYSE:HAE) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

100.0% of K2M Group shares are held by institutional investors. Comparatively, 98.1% of Haemonetics shares are held by institutional investors. 5.8% of K2M Group shares are held by insiders. Comparatively, 1.2% of Haemonetics shares are held by 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.

Risk and Volatility

K2M Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Haemonetics has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for K2M Group and Haemonetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K2M Group 0 1 8 0 2.89
Haemonetics 0 2 4 0 2.67

K2M Group presently has a consensus price target of $24.50, suggesting a potential upside of 24.43%. Haemonetics has a consensus price target of $70.00, suggesting a potential downside of 5.35%. Given K2M Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe K2M Group is more favorable than Haemonetics.


This table compares K2M Group and Haemonetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K2M Group -14.40% -14.85% -9.82%
Haemonetics -1.94% 12.39% 7.66%

Earnings and Valuation

This table compares K2M Group and Haemonetics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
K2M Group $258.03 million 3.31 -$37.14 million ($0.87) -22.63
Haemonetics $886.12 million 4.46 -$26.26 million ($0.34) -217.52

Haemonetics has higher revenue and earnings than K2M Group. Haemonetics is trading at a lower price-to-earnings ratio than K2M Group, indicating that it is currently the more affordable of the two stocks.

About K2M Group

K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.

About Haemonetics

Haemonetics Corporation (Haemonetics) is a healthcare company. The Company provides various products to customers involved in the processing, handling and analysis of blood. The Company’s segments include Japan, EMEA, North America Plasma and All Other. Haemonetics provides plasma collection systems and software, which enable plasma fractionators to make pharmaceuticals. The Company enables plasma collection customers to source from it a range of products necessary for plasma collection and storage, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, such as saline. Haemonetics offers automated blood component and manual whole blood collection systems to blood collection centers to collect blood products. The Company offers a range of blood management solutions. The Company has a suite of integrated software solutions, which include solutions for blood drive planning and blood collection.

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