OraSure Technologies (NASDAQ: OSUR) and STAAR Surgical (NASDAQ:STAA) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitabiliy, dividends, valuation and institutional ownership.
Profitability
This table compares OraSure Technologies and STAAR Surgical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OraSure Technologies | 22.57% | 16.06% | 14.08% |
| STAAR Surgical | -7.53% | -10.83% | -6.21% |
Risk and Volatility
OraSure Technologies has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Institutional and Insider Ownership
89.9% of OraSure Technologies shares are owned by institutional investors. Comparatively, 75.7% of STAAR Surgical shares are owned by institutional investors. 7.8% of OraSure Technologies shares are owned by company insiders. Comparatively, 5.6% of STAAR Surgical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for OraSure Technologies and STAAR Surgical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OraSure Technologies | 0 | 1 | 5 | 0 | 2.83 |
| STAAR Surgical | 0 | 2 | 1 | 0 | 2.33 |
OraSure Technologies presently has a consensus price target of $14.38, suggesting a potential downside of 16.76%. STAAR Surgical has a consensus price target of $10.50, suggesting a potential downside of 0.47%. Given STAAR Surgical’s higher possible upside, analysts clearly believe STAAR Surgical is more favorable than OraSure Technologies.
Earnings and Valuation
This table compares OraSure Technologies and STAAR Surgical’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| OraSure Technologies | $126.26 million | 7.90 | $21.28 million | $0.52 | 33.21 |
| STAAR Surgical | $83.51 million | 5.17 | -$1.64 million | ($0.14) | -75.35 |
OraSure Technologies has higher revenue and earnings than STAAR Surgical. STAAR Surgical is trading at a lower price-to-earnings ratio than OraSure Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
OraSure Technologies beats STAAR Surgical on 12 of the 13 factors compared between the two stocks.
About OraSure Technologies
OraSure Technologies, Inc. (OraSure) is involved in the development, manufacture, marketing and sale of oral fluid diagnostic products and specimen collection devices using its technologies, as well as other diagnostic products, including immunoassays and other in vitro diagnostic tests that are used on other specimen types. The Company operates in two segments: OSUR and DNAG. OSUR consists of the development, manufacture and sale of diagnostic products, specimen collection devices, and medical devices. DNAG or molecular collection systems business consists primarily of the development, manufacture and sale of oral fluid collection devices that are used to collect, stabilize, and store samples of genetic material for molecular testing. It also manufactures and sells medical devices used for the removal of benign skin lesions by cryosurgery or freezing. It sells over-the-counter (OTC) cryosurgical products to consumers in North America, Europe, Central and South America, and Australia.
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.
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