HeartWare International (NASDAQ: HTWR) and Cerus Corporation (NASDAQ:CERS) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Volatility & Risk
HeartWare International has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Cerus Corporation has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.
Profitability
This table compares HeartWare International and Cerus Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HeartWare International | -15.84% | -25.32% | -10.14% |
| Cerus Corporation | -164.39% | -120.31% | -65.38% |
Valuation and Earnings
This table compares HeartWare International and Cerus Corporation’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| HeartWare International | N/A | N/A | N/A | ($3.40) | -17.05 |
| Cerus Corporation | $36.83 million | 7.05 | -$61.75 million | ($0.61) | -3.90 |
HeartWare International has higher revenue, but lower earnings than Cerus Corporation. HeartWare International is trading at a lower price-to-earnings ratio than Cerus Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
62.6% of Cerus Corporation shares are owned by institutional investors. 7.4% of Cerus Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for HeartWare International and Cerus Corporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HeartWare International | 0 | 0 | 0 | 0 | N/A |
| Cerus Corporation | 0 | 0 | 4 | 0 | 3.00 |
Cerus Corporation has a consensus target price of $7.25, suggesting a potential upside of 204.62%. Given Cerus Corporation’s higher probable upside, analysts plainly believe Cerus Corporation is more favorable than HeartWare International.
Summary
Cerus Corporation beats HeartWare International on 7 of the 10 factors compared between the two stocks.
HeartWare International Company Profile
Heartware International, Inc. is a medical device company. The Company develops and manufactures miniaturized implantable heart pumps or ventricular assist devices to treat patients suffering from advanced heart failure. The Company operates in the segment of design and manufacture of medical devices. The HeartWare Ventricular Assist System (HVAD System), which includes a ventricular assist device (VAD) or blood pump, patient accessories and surgical tools, provides circulatory support for patients in the advanced stage of heart failure. The HVAD System is designed to be implanted adjacent to the heart, avoiding abdominal surgery. The HVAD System features the centrifugal pump designed to be implanted in the chest, directly adjacent to the heart. It develops MVAD System, a miniaturized device. The CircuLite Surgical System is designed to be implanted through a right, mini-thoracotomy procedure and does not require a sternotomy or cardiopulmonary bypass.
Cerus Corporation Company Profile
Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.
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