Analyzing Bio-Rad Laboratories (NYSE:BIO) & Haemonetics (NYSE:HAE)

Bio-Rad Laboratories (NYSE:BIO) and Haemonetics (NYSE:HAE) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk & Volatility

Bio-Rad Laboratories has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Haemonetics has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Bio-Rad Laboratories and Haemonetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bio-Rad Laboratories	29.42%	3.86%	2.70%
Haemonetics	13.31%	27.32%	9.61%

Insider and Institutional Ownership

65.2% of Bio-Rad Laboratories shares are held by institutional investors. Comparatively, 99.7% of Haemonetics shares are held by institutional investors. 30.3% of Bio-Rad Laboratories shares are held by insiders. Comparatively, 1.8% of Haemonetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Bio-Rad Laboratories and Haemonetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bio-Rad Laboratories	1	3	2	0	2.17
Haemonetics	0	4	6	1	2.73

Bio-Rad Laboratories currently has a consensus target price of $339.75, suggesting a potential upside of 16.37%. Haemonetics has a consensus target price of $82.78, suggesting a potential upside of 36.94%. Given Haemonetics’ stronger consensus rating and higher probable upside, analysts plainly believe Haemonetics is more favorable than Bio-Rad Laboratories.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bio-Rad Laboratories	$2.58 billion	3.05	$759.90 million	$27.91	10.46
Haemonetics	$1.36 billion	2.06	$167.68 million	$3.63	16.65

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

Summary

Haemonetics beats Bio-Rad Laboratories on 8 of the 15 factors compared between the two stocks.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc. manufactures and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. It operates through two segments, Life Science and Clinical Diagnostics. The company develops, manufactures, and markets instruments, systems, reagents, and consumables to separate, purify, characterize, and quantitate biological materials such as cells, proteins, and nucleic acids for proteomics, genomics, biopharmaceutical production, cellular biology, and food safety markets. It also designs, manufactures, markets, and supports test systems, informatics systems, test kits, and specialized quality controls for hospitals, diagnostic reference, transfusion, and physician office laboratories. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.

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.