STAAR Surgical (NASDAQ:STAA – Get Free Report) and Rockwell Medical (NASDAQ:RMTI – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Volatility and Risk
STAAR Surgical has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.
Profitability
This table compares STAAR Surgical and Rockwell Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STAAR Surgical | 1.13% | 9.05% | 6.99% |
| Rockwell Medical | -7.33% | -14.03% | -8.90% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STAAR Surgical | 3 | 8 | 2 | 0 | 1.92 |
| Rockwell Medical | 1 | 0 | 1 | 0 | 2.00 |
STAAR Surgical presently has a consensus target price of $28.40, suggesting a potential upside of 25.94%. Rockwell Medical has a consensus target price of $20.00, suggesting a potential upside of 150.03%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Medical is more favorable than STAAR Surgical.
Earnings & Valuation
This table compares STAAR Surgical and Rockwell Medical”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STAAR Surgical | $239.44 million | 4.72 | -$80.45 million | $0.07 | 322.16 |
| Rockwell Medical | $69.26 million | 0.47 | -$5.31 million | ($1.34) | -5.97 |
Rockwell Medical has lower revenue, but higher earnings than STAAR Surgical. Rockwell Medical is trading at a lower price-to-earnings ratio than STAAR Surgical, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
96.7% of STAAR Surgical shares are owned by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are owned by institutional investors. 39.9% of STAAR Surgical shares are owned by insiders. Comparatively, 4.6% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
STAAR Surgical beats Rockwell Medical on 10 of the 14 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 Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
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