Financial Review: Haemonetics (NYSE:HAE) versus Sysmex (OTCMKTS:SSMXY)

Sysmex (OTCMKTS:SSMXY) and Haemonetics (NYSE:HAE) are both mid-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Institutional & Insider Ownership

99.7% of Haemonetics shares are held by institutional investors. 2.1% of Haemonetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sysmex and Haemonetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysmex	0	2	0	0	2.00
Haemonetics	0	3	7	1	2.82

Haemonetics has a consensus target price of $126.38, indicating a potential upside of 3.21%. Given Haemonetics’ stronger consensus rating and higher probable upside, analysts plainly believe Haemonetics is more favorable than Sysmex.

Earnings & Valuation

This table compares Sysmex and Haemonetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysmex	$3.32 billion	2.45	$234.01 million	$0.42	31.80
Haemonetics	$1.33 billion	4.18	$97.31 million	$2.23	54.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sysmex	7.62%	8.01%	5.61%
Haemonetics	7.52%	27.42%	9.77%

Risk and Volatility

Sysmex has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Haemonetics has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Summary

Haemonetics beats Sysmex on 10 of the 15 factors compared between the two stocks.

About Sysmex

Sysmex Corporation is a Japan-based healthcare technology company that develops, manufactures and sells diagnostic testing instruments, reagents and related services. Its products are used by hospitals, clinical laboratories and other healthcare providers to analyze patient samples and support medical diagnosis. The company is best known for its hematology testing systems and also offers products for hemostasis, urinalysis, clinical chemistry and immunochemistry, as well as laboratory information systems and support services.

About Haemonetics

Haemonetics Corporation is a global medical technology company focused on blood and plasma collection, processing and management. Its products and services are used by plasma collection organizations, blood centers and hospitals. The company provides automated plasma collection systems and related software and supplies, as well as technologies for collecting and processing blood components. Its hospital offerings include devices for surgical blood salvage and tools that help clinicians assess blood clotting and guide transfusion decisions.