Analyzing STAAR Surgical (NASDAQ:STAA) and Lancer Orthodontics (OTCMKTS:LANZ)

Lancer Orthodontics (OTCMKTS:LANZ) and STAAR Surgical (NASDAQ:STAA) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lancer Orthodontics	N/A	N/A	N/A
STAAR Surgical	-41.79%	-16.06%	-12.40%

Risk & Volatility

Lancer Orthodontics has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

96.7% of STAAR Surgical shares are owned by institutional investors. 24.3% of Lancer Orthodontics shares are owned by company insiders. Comparatively, 0.6% of STAAR Surgical shares are owned 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.

Valuation and Earnings

This table compares Lancer Orthodontics and STAAR Surgical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lancer Orthodontics	N/A	N/A	N/A	N/A	N/A
STAAR Surgical	$313.90 million	3.74	-$20.21 million	($1.95)	-12.12

Lancer Orthodontics has higher earnings, but lower revenue than STAAR Surgical.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lancer Orthodontics and STAAR Surgical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lancer Orthodontics	0	0	0	0	0.00
STAAR Surgical	1	10	0	0	1.91

STAAR Surgical has a consensus target price of $23.42, indicating a potential downside of 0.90%. Given STAAR Surgical’s stronger consensus rating and higher probable upside, analysts plainly believe STAAR Surgical is more favorable than Lancer Orthodontics.

Summary

STAAR Surgical beats Lancer Orthodontics on 5 of the 9 factors compared between the two stocks.

About Lancer Orthodontics

Lancer Orthodontics, Inc. designs, manufactures, and markets orthodontic products for orthodontists and dentists worldwide. It offers aesthetic brackets, brackets and buccal tubes, bands, adhesives, wires, elastomerics, intraoral and extraoral appliances, instruments, and miscellaneous products. The company was founded in 1967 and is based in Vista, California.

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.