Steris (NYSE: STE) and C R Bard (NYSE:BCR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Volatility and Risk
Steris has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, C R Bard has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
This table compares Steris and C R Bard’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|C R Bard||9.51%||19.39%||6.91%|
Steris pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. C R Bard pays an annual dividend of $0.78 per share and has a dividend yield of 0.2%. Steris pays out 43.5% of its earnings in the form of a dividend. C R Bard pays out 10.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Steris has increased its dividend for 8 consecutive years and C R Bard has increased its dividend for 46 consecutive years.
Earnings and Valuation
This table compares Steris and C R Bard’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Steris||$2.61 billion||3.07||$109.96 million||$2.85||33.21|
|C R Bard||$3.71 billion||6.50||$531.40 million||$7.59||43.64|
C R Bard has higher revenue and earnings than Steris. Steris is trading at a lower price-to-earnings ratio than C R Bard, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.4% of Steris shares are owned by institutional investors. Comparatively, 79.1% of C R Bard shares are owned by institutional investors. 2.6% of Steris shares are owned by insiders. Comparatively, 0.8% of C R Bard shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Steris and C R Bard, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C R Bard||0||7||0||0||2.00|
Steris currently has a consensus target price of $80.25, indicating a potential downside of 15.20%. C R Bard has a consensus target price of $310.60, indicating a potential downside of 6.23%. Given C R Bard’s higher probable upside, analysts clearly believe C R Bard is more favorable than Steris.
C R Bard beats Steris on 11 of the 17 factors compared between the two stocks.
STERIS plc provides infection prevention and other procedural products and services. The Company operates through four segments: Healthcare Products, which offers infection prevention and procedural solutions for healthcare providers, including capital equipment and related maintenance, and installation services, as well as consumables; Healthcare Specialty Services, which provides a range of specialty services for healthcare providers, including hospital sterilization services, instrument and scope repairs, and linen management; Life Sciences, which offers capital equipment and consumable products, and equipment maintenance and specialty services for pharmaceutical manufacturers and research facilities, and Applied Sterilization Technologies, which offers contract sterilization and laboratory services for medical device and pharmaceutical customers and others. Its Corporate and other segment includes the Defense and Industrial business unit.
About C R Bard
C. R. Bard, Inc. (Bard) is engaged in designing, manufacturing, packaging, distribution and sale of medical, surgical, diagnostic and patient care devices. The Company operates through the manufacture and sale of medical devices segment. It sells a range of products to hospitals, individual healthcare professionals, extended care facilities and alternate site facilities on a global basis. Its vascular products cover a range of minimally invasive devices for the treatment of peripheral vascular disease and end-stage renal disease. Its urology products include basic urology drainage products, fecal and urinary continence products, urological specialty products and Targeted Temperature Management products. Its oncology products cover a range of devices used in the treatment and management of various cancers, and other diseases and disorders. Its surgical specialty products include implanted patches and fixation devices for hernia and soft tissue repairs.
Receive News & Ratings for Steris Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Steris and related companies with MarketBeat.com's FREE daily email newsletter.