Haemonetics (NYSE: HAE) and K2M Group (NASDAQ:KTWO) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Insider & Institutional Ownership
99.9% of Haemonetics shares are held by institutional investors. Comparatively, 99.8% of K2M Group shares are held by institutional investors. 1.2% of Haemonetics shares are held by company insiders. Comparatively, 5.8% of K2M Group shares are held 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.
This table compares Haemonetics and K2M Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Haemonetics||$886.12 million||4.49||-$26.26 million||($0.35)||-212.60|
|K2M Group||$258.03 million||3.26||-$37.14 million||($0.87)||-22.25|
Haemonetics has higher revenue and earnings than K2M Group. Haemonetics is trading at a lower price-to-earnings ratio than K2M Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Haemonetics has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, K2M Group has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Haemonetics and K2M Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Haemonetics presently has a consensus price target of $70.00, suggesting a potential downside of 5.93%. K2M Group has a consensus price target of $24.50, suggesting a potential upside of 26.55%. Given K2M Group’s stronger consensus rating and higher probable upside, analysts plainly believe K2M Group is more favorable than Haemonetics.
This table compares Haemonetics and K2M Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Haemonetics beats K2M Group on 8 of the 14 factors compared between the two stocks.
Haemonetics Corporation (Haemonetics) is a healthcare company. The Company provides various products to customers involved in the processing, handling and analysis of blood. The Company’s segments include Japan, EMEA, North America Plasma and All Other. Haemonetics provides plasma collection systems and software, which enable plasma fractionators to make pharmaceuticals. The Company enables plasma collection customers to source from it a range of products necessary for plasma collection and storage, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, such as saline. Haemonetics offers automated blood component and manual whole blood collection systems to blood collection centers to collect blood products. The Company offers a range of blood management solutions. The Company has a suite of integrated software solutions, which include solutions for blood drive planning and blood collection.
About K2M Group
K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.
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