Analyzing STAAR Surgical (NASDAQ:STAA) & Enovis (NYSE:ENOV)

Enovis (NYSE:ENOV) and STAAR Surgical (NASDAQ:STAA) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Enovis and STAAR Surgical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovis	$2.25 billion	0.51	-$1.18 billion	($19.26)	-1.03
STAAR Surgical	$239.44 million	5.14	-$80.45 million	$0.07	350.57

STAAR Surgical has lower revenue, but higher earnings than Enovis. Enovis is trading at a lower price-to-earnings ratio than STAAR Surgical, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.5% of Enovis shares are held by institutional investors. Comparatively, 96.7% of STAAR Surgical shares are held by institutional investors. 2.9% of Enovis shares are held by company insiders. Comparatively, 39.9% of STAAR Surgical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Enovis has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Enovis and STAAR Surgical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovis	1	1	10	0	2.75
STAAR Surgical	3	5	4	1	2.23

Enovis currently has a consensus price target of $37.25, suggesting a potential upside of 87.00%. STAAR Surgical has a consensus price target of $28.45, suggesting a potential upside of 15.95%. Given Enovis’ stronger consensus rating and higher probable upside, equities analysts plainly believe Enovis is more favorable than STAAR Surgical.

Profitability

This table compares Enovis and STAAR Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enovis	-47.96%	12.03%	4.91%
STAAR Surgical	1.13%	9.05%	6.99%

Summary

STAAR Surgical beats Enovis on 8 of the 15 factors compared between the two stocks.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.

About STAAR Surgical

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists. The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally. STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.