Financial Review: Haemonetics (NYSE:HAE) vs. Spectral Medical (OTCMKTS:EDTXF)

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

Volatility & Risk

Haemonetics has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Spectral Medical has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Haemonetics and Spectral Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haemonetics	1	1	6	1	2.78
Spectral Medical	0	0	0	0	0.00

Haemonetics currently has a consensus target price of $101.22, suggesting a potential upside of 59.96%. Given Haemonetics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Haemonetics is more favorable than Spectral Medical.

Valuation and Earnings

This table compares Haemonetics and Spectral Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haemonetics	$1.37 billion	2.31	$117.56 million	$2.54	24.91
Spectral Medical	$1.18 million	128.40	-$11.60 million	($0.07)	-7.60

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

Institutional & Insider Ownership

99.7% of Haemonetics shares are held by institutional investors. 1.8% of Haemonetics shares are held by company insiders. Comparatively, 1.5% of Spectral Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Haemonetics	9.47%	23.66%	8.82%
Spectral Medical	-1,245.87%	N/A	-351.89%

Summary

Haemonetics beats Spectral Medical on 13 of the 15 factors compared between the two stocks.

About Haemonetics

Haemonetics Corporation, a healthcare company, provides suite of medical products and solutions in the United States and internationally. The company offers automated plasma collection systems, donor management software, and supporting software solutions including NexSys PCS and PCS2 plasmapheresis equipment and related disposables and solutions, as well as integrated information technology platforms for plasma customers to manage their donors, operations, and supply chain; and NexLynk DMS donor management system and Donor360 app. It 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 blood bank information system; and BloodTrack blood management software, 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. In addition, the company offers hospital products comprising TEG and HAS hemostasis analyzer systems that provide a comprehensive assessment of a patient's overall hemostasis; and 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. Further, it provides Cell Saver Elite +, an autologous blood recovery system for cardiovascular, orthopedic, trauma, transplant, vascular, obstetrical, and gynecological surgeries; and VASCADE products comprising VASCADE and VASCADE MVP, a technology platform which offers catheter-based delivery system and leverages the natural clot-inducing properties of collagen. The company sells its products through direct sales force, independent distributors, and sales representatives. Haemonetics Corporation was founded in 1971 and is headquartered in Boston, Massachusetts.

About Spectral Medical

Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.