Contrasting Spotlight Innovation (OTCMKTS:STLT) and STAAR Surgical (NASDAQ:STAA)

STAAR Surgical (NASDAQ:STAA) and Spotlight Innovation (OTCMKTS:STLT) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
STAAR Surgical	-41.79%	-16.06%	-12.40%
Spotlight Innovation	N/A	N/A	N/A

Valuation and Earnings

This table compares STAAR Surgical and Spotlight Innovation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STAAR Surgical	$230.59 million	5.04	-$20.21 million	($1.95)	-11.97
Spotlight Innovation	N/A	N/A	N/A	N/A	N/A

Spotlight Innovation has lower revenue, but higher earnings than STAAR Surgical.

Insider & Institutional Ownership

96.7% of STAAR Surgical shares are owned by institutional investors. 0.6% of STAAR Surgical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for STAAR Surgical and Spotlight Innovation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STAAR Surgical	1	10	0	0	1.91
Spotlight Innovation	0	0	0	0	0.00

STAAR Surgical presently has a consensus target price of $23.42, indicating a potential upside of 0.29%. Given STAAR Surgical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe STAAR Surgical is more favorable than Spotlight Innovation.

Summary

STAAR Surgical beats Spotlight Innovation on 5 of the 8 factors compared between the two stocks.

About STAAR Surgical

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists. The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally. STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.

About Spotlight Innovation

Spotlight Innovation Inc., a pharmaceutical company, acquires and develops proprietary therapies to address unmet medical needs with an emphasis on rare, emerging, and neglected diseases. It identifies in-licensing opportunities and manages product development through partnerships with universities, medical schools, contract research organizations, and contract manufacturing organizations, as well as pursues product commercialization opportunities, including out-licensing and strategic partnerships. The company is developing Crotoxin, which is in Phase I clinical study for the treatment of cancer. It also develops various compounds for the treatment of viral infections, including Zika virus infection; and products derived from cobra venom to treat chronic pain. Spotlight Innovation Inc. has a license agreement with Indiana University Research and Technology Corporation to commercialize STL-182, an orally-available small molecule that might have therapeutic potential for treating spinal muscular atrophy. The company is based in Urbandale, Iowa.