Financial Analysis: Haemonetics Corporation (HAE) versus AtriCure (ATRC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Haemonetics Corporation 0.48% 11.07% 6.54%
AtriCure -19.56% -19.56% -11.91%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Haemonetics Corporation $887.11 million 2.73 $164.54 million $0.08 575.70
AtriCure $166.00 million 4.63 -$19.62 million ($1.01) -22.18

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

Volatility and Risk

Haemonetics Corporation has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, AtriCure has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

82.1% of AtriCure shares are owned by institutional investors. 1.2% of Haemonetics Corporation shares are owned by insiders. Comparatively, 10.0% of AtriCure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Haemonetics Corporation and AtriCure, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Haemonetics Corporation 1 3 3 0 2.29
AtriCure 0 1 6 0 2.86

Haemonetics Corporation presently has a consensus target price of $41.17, indicating a potential downside of 10.60%. AtriCure has a consensus target price of $25.83, indicating a potential upside of 15.33%. Given AtriCure’s stronger consensus rating and higher probable upside, analysts clearly believe AtriCure is more favorable than Haemonetics Corporation.

Summary

Haemonetics Corporation beats AtriCure on 7 of the 13 factors compared between the two stocks.

Haemonetics Corporation Company Profile

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.

AtriCure Company Profile

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

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