Neogen (NASDAQ: NEOG) and Haemonetics (NYSE:HAE) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
67.6% of Neogen shares are owned by institutional investors. Comparatively, 99.9% of Haemonetics shares are owned by institutional investors. 4.2% of Neogen shares are owned by insiders. Comparatively, 1.2% of Haemonetics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Neogen and Haemonetics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Neogen||$361.59 million||9.08||$43.79 million||$1.01||63.42|
|Haemonetics||$886.12 million||4.44||-$26.26 million||($0.34)||-216.32|
Neogen has higher earnings, but lower revenue than Haemonetics. Haemonetics is trading at a lower price-to-earnings ratio than Neogen, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Neogen has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Haemonetics has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
This table compares Neogen and Haemonetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Neogen and Haemonetics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Neogen currently has a consensus target price of $61.33, indicating a potential downside of 3.78%. Haemonetics has a consensus target price of $70.00, indicating a potential downside of 4.83%. Given Neogen’s higher possible upside, research analysts plainly believe Neogen is more favorable than Haemonetics.
Neogen beats Haemonetics on 9 of the 14 factors compared between the two stocks.
Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment primarily offers diagnostic test kits and complementary to detect dangerous and/or unintended substances in human food and animal feed, such as foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test for adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed, and grain processors and processors; meat and poultry processors, seafood processors, fruit and vegetable producers, and dairies; laboratories; and producers of pharmaceuticals, cosmetics, veterinary vaccines, and nutraceutical products. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topical and diagnostic products, rodenticides, cleaners, disinfectants, insecticides, and genomics testing services for the animal safety market. This segment offers various products for researchers to detect biologically active substances. Its drug detection immunoassay test kits are used for the detection of abused and therapeutic drugs in farm and racing animals; detection of drug residues in meat and meat products; and human forensic toxicology drug screening applications. In addition, this segment's products are also used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. The company sells its products directly, as well as through distributors and retail chains. Neogen Corporation was founded in 1981 and is headquartered in Lansing, Michigan.
Haemonetics Corporation (Haemonetics) is a healthcare company. The Company provides various products to customers involved in the processing, handling and analysis of blood. The Company’s segments include Japan, EMEA, North America Plasma and All Other. Haemonetics provides plasma collection systems and software, which enable plasma fractionators to make pharmaceuticals. The Company enables plasma collection customers to source from it a range of products necessary for plasma collection and storage, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, such as saline. Haemonetics offers automated blood component and manual whole blood collection systems to blood collection centers to collect blood products. The Company offers a range of blood management solutions. The Company has a suite of integrated software solutions, which include solutions for blood drive planning and blood collection.
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