Financial Analysis: Enovis (NYSE:ENOV) versus STAAR Surgical (NASDAQ:STAA)

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

Institutional and Insider Ownership

96.7% of STAAR Surgical shares are held by institutional investors. Comparatively, 98.4% of Enovis shares are held by institutional investors. 39.9% of STAAR Surgical shares are held by company insiders. Comparatively, 2.9% of Enovis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

STAAR Surgical has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Enovis has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for STAAR Surgical and Enovis, as reported by MarketBeat.

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

STAAR Surgical currently has a consensus price target of $28.45, indicating a potential upside of 15.62%. Enovis has a consensus price target of $37.25, indicating a potential upside of 70.49%. Given Enovis’ stronger consensus rating and higher probable upside, analysts clearly believe Enovis is more favorable than STAAR Surgical.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STAAR Surgical	$239.44 million	5.15	-$80.45 million	$0.07	351.57
Enovis	$2.30 billion	0.55	-$1.18 billion	($19.26)	-1.13

STAAR Surgical has higher earnings, but lower revenue 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.

Profitability

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

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

Summary

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

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.

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.