Haemonetics (NYSE:HAE) versus Nuvectra (NYSE:NVTR) Critical Analysis

Haemonetics (NYSE:HAE) and Nuvectra (NASDAQ:NVTR) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

98.5% of Haemonetics shares are held by institutional investors. Comparatively, 73.8% of Nuvectra shares are held by institutional investors. 1.3% of Haemonetics shares are held by company insiders. Comparatively, 2.9% of Nuvectra shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Haemonetics 5.05% 21.07% 10.91%
Nuvectra -99.08% -58.23% -34.01%

Analyst Recommendations

This is a summary of recent ratings and price targets for Haemonetics and Nuvectra, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Haemonetics 0 0 5 0 3.00
Nuvectra 0 0 3 0 3.00

Haemonetics currently has a consensus price target of $144.40, indicating a potential upside of 5.12%. Nuvectra has a consensus price target of $10.67, indicating a potential upside of 527.45%. Given Nuvectra’s higher possible upside, analysts clearly believe Nuvectra is more favorable than Haemonetics.

Risk & Volatility

Haemonetics has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Nuvectra has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares Haemonetics and Nuvectra’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Haemonetics $967.58 million 7.21 $55.02 million $2.39 57.48
Nuvectra $48.83 million 0.62 -$48.13 million ($3.19) -0.53

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

Summary

Haemonetics beats Nuvectra on 11 of the 13 factors compared between the two stocks.

Haemonetics Company Profile

Haemonetics Corporation, a healthcare company, provides hematology products and solutions. The company operates through five segments: North America Plasma; Americas Blood Center and Hospital; Europe, Middle East and Africa; Asia Pacific; and Japan. It offers automated plasma collection devices and related disposables, including NexSys PCS plasmapheresis system and PCS2 equipment and disposables, plasma collection containers, and intravenous solutions, as well as information technology platforms for plasma customers to manage their donors, operations, and supply chain; and NexLynk DMS donor management system. The company also provides automated blood component and manual whole blood collection systems, such as MCS brand apheresis equipment to collect specific blood components from the donor; disposable whole blood collection and component storage sets; SafeTrace Tx and El-Dorado Donor donation and blood unit management systems; Hemasphere software that provides support for blood drive planning; and Donor Doc and e-Donor software to enhance the donor recruitment and retention. In addition, it offers hospital products comprising TEG diagnostic systems that enables clinicians to assess the coagulation status of a patient at the point-of-care or laboratory setting; TEG Manager software, which connects various TEG analyzers throughout the hospital, providing clinicians remote access to active and historical test results that inform treatment decisions; Cell Saver Elite +, a surgical blood salvage system for cardiovascular, orthopedic, trauma, transplant, vascular, obstetrical, and gynecological surgeries; OrthoPAT, a perioperative autotranfusion system for orthopedic procedures; and BloodTrack, a suite of blood management and bedside transfusion solutions that combines software with hardware components, as well as an extension of the hospital's blood bank information system. Haemonetics Corporation was founded in 1971 and is headquartered in Braintree, Massachusetts.

Nuvectra Company Profile

Nuvectra Corporation, a neurostimulation medical device company, develops and commercializes neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets. The company offers Algovita, a spinal cord stimulation system for the treatment of chronic intractable pain of the trunk and limbs. It is also developing Virtis, a sacral neuromodulation (SNM) system for the treatment of chronic urinary retention and overactive bladder; and technologies to support other indications, including SNM for the treatment of overactive bladder and deep brain stimulation to treat Parkinson's disease. The company serves hospitals, surgery centers, and medical facilities through a direct sales force and third-party distributors in the United States and Europe. Nuvectra Corporation was founded in 2008 and is headquartered in Plano, Texas.

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