Critical Analysis: STERIS (NYSE:STE) vs. Sanara MedTech (NASDAQ:SMTI)

Sanara MedTech (NASDAQ:SMTIGet Rating) and STERIS (NYSE:STEGet Rating) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Sanara MedTech has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, STERIS has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sanara MedTech and STERIS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanara MedTech $24.14 million 14.02 -$7.92 million ($1.49) -27.38
STERIS $4.59 billion 3.87 $243.89 million ($0.29) -616.25

STERIS has higher revenue and earnings than Sanara MedTech. STERIS is trading at a lower price-to-earnings ratio than Sanara MedTech, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sanara MedTech and STERIS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanara MedTech 0 0 1 0 3.00
STERIS 0 1 5 0 2.83

Sanara MedTech presently has a consensus target price of $50.00, indicating a potential upside of 22.58%. STERIS has a consensus target price of $232.83, indicating a potential upside of 30.28%. Given STERIS’s higher possible upside, analysts plainly believe STERIS is more favorable than Sanara MedTech.

Profitability

This table compares Sanara MedTech and STERIS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanara MedTech -30.33% -32.84% -25.56%
STERIS -0.58% 12.86% 7.27%

Insider & Institutional Ownership

4.0% of Sanara MedTech shares are owned by institutional investors. Comparatively, 92.4% of STERIS shares are owned by institutional investors. 58.4% of Sanara MedTech shares are owned by company insiders. Comparatively, 1.0% of STERIS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

STERIS beats Sanara MedTech on 9 of the 13 factors compared between the two stocks.

About Sanara MedTech

(Get Rating)

Sanara MedTech, Inc.engages in the development, marketing, and distribution of biotechnology products to physicians, hospitals, and clinics. It offers CellerateRX Surgical Activated Collagen Adjuvant and HemaQuell Resorbable Bone Hemostat. The company was founded in 1982 and is headquartered in Fort Worth, TX.

About STERIS

(Get Rating)

STERIS Plc engages in the provision of healthcare and life science product and service solutions. It operates through the following segments: Healthcare, Life Sciences, Applied Sterilization Technologies, and Dental. The Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. The Life Sciences segment designs, manufactures, and sells consumable products, equipment maintenance, specialty services, and capital equipment. The Applied Sterilization Technologies segment is involved in contract sterilization and testing services for medical device and pharmaceutical manufacturers. The Dental segment provides a comprehensive offering for dental practitioners and dental schools, offering instruments, infection prevention consumables and instrument management systems. The company was founded in 1985 and is headquartered in Mentor, OH.

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