Critical Survey: Tandem Diabetes Care (TNDM) versus STAAR Surgical (STAA)
Tandem Diabetes Care (NASDAQ: TNDM) and STAAR Surgical (NASDAQ:STAA) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Risk & Volatility
Tandem Diabetes Care has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Tandem Diabetes Care and STAAR Surgical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tandem Diabetes Care||0||4||2||0||2.33|
Tandem Diabetes Care presently has a consensus price target of $13.00, suggesting a potential upside of 403.88%. STAAR Surgical has a consensus price target of $20.50, suggesting a potential upside of 26.93%. Given Tandem Diabetes Care’s higher probable upside, research analysts plainly believe Tandem Diabetes Care is more favorable than STAAR Surgical.
Insider and Institutional Ownership
77.7% of STAAR Surgical shares are held by institutional investors. 20.9% of Tandem Diabetes Care shares are held by insiders. Comparatively, 5.6% of STAAR Surgical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Tandem Diabetes Care and STAAR Surgical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tandem Diabetes Care||$84.25 million||0.31||-$83.44 million||($19.79)||-0.13|
|STAAR Surgical||$82.43 million||8.06||-$12.12 million||($0.04)||-403.75|
STAAR Surgical has lower revenue, but higher earnings than Tandem Diabetes Care. STAAR Surgical is trading at a lower price-to-earnings ratio than Tandem Diabetes Care, indicating that it is currently the more affordable of the two stocks.
This table compares Tandem Diabetes Care and STAAR Surgical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tandem Diabetes Care||-79.45%||-1,177.11%||-74.29%|
STAAR Surgical beats Tandem Diabetes Care on 9 of the 12 factors compared between the two stocks.
Tandem Diabetes Care Company Profile
Tandem Diabetes Care, Inc. is a medical device company. The Company is engaged in designing, developing and commercializing products for people with insulin-dependent diabetes. The Company manufactures and sells three insulin pump products, which include t:slim Insulin Delivery System (t:slim), t:flex Insulin Delivery System (t:flex) and t:slim G4 Insulin Delivery System (t:slim G4). Its technology platform features Micro-Delivery Technology, a miniaturized pumping mechanism, which draws insulin from a flexible bag within the pump’s cartridge rather than relying on a syringe and plunger mechanism. It also features a software, which is a vivid color touch screen and a micro- universal serial bus (USB) connection that supports both a rechargeable battery and uploads to t:connect Diabetes Management Application (t:connect), its custom cloud-based data management application that provides display therapy management data from the pump and supported blood glucose meters.
STAAR Surgical Company Profile
STAAR Surgical Company designs, develops, manufactures and sells implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. It operates in the ophthalmic surgical market segment. Its principal products are intraocular lenses used in cataract surgery and implantable collamer lenses used in refractive surgery. It makes lenses used across the world in corrective or refractive surgery, and makes lenses for use in surgery that treats cataracts. Its refractive surgery corrects the types of visual disorders that glasses or contact lenses have treated (myopia, hyperopia, astigmatism and presbyopia). Its refractive surgery corrects the types of visual disorders that glasses or contact lenses have treated (myopia, hyperopia, astigmatism and presbyopia). As of December 30, 2016, it sold its products in more than 60 countries, with direct distribution in the United States, Canada, Japan and Spain, and independent distribution in the remainder of the world.
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