Smith & Nephew SNATS (NYSE: SNN) and Cerus (NASDAQ:CERS) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Smith & Nephew SNATS and Cerus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smith & Nephew SNATS 0 6 2 0 2.25
Cerus 0 0 4 0 3.00

Cerus has a consensus target price of $7.25, suggesting a potential upside of 189.42%. Given Cerus’ stronger consensus rating and higher probable upside, analysts plainly believe Cerus is more favorable than Smith & Nephew SNATS.

Profitability

This table compares Smith & Nephew SNATS and Cerus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smith & Nephew SNATS N/A N/A N/A
Cerus -152.64% -169.65% -81.36%

Volatility and Risk

Smith & Nephew SNATS has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Cerus has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Institutional & Insider Ownership

7.2% of Smith & Nephew SNATS shares are owned by institutional investors. Comparatively, 65.1% of Cerus shares are owned by institutional investors. 1.0% of Smith & Nephew SNATS shares are owned by insiders. Comparatively, 7.4% of Cerus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Smith & Nephew SNATS and Cerus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Smith & Nephew SNATS $4.68 billion 3.31 $1.32 billion N/A N/A
Cerus $36.56 million 7.12 -$62.24 million ($0.61) -4.11

Smith & Nephew SNATS has higher revenue and earnings than Cerus.

Dividends

Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. Cerus does not pay a dividend. Smith & Nephew SNATS has raised its dividend for 4 consecutive years.

About Smith & Nephew SNATS

Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.

About Cerus

Cerus Corporation is a biomedical products company. The Company is engaged in developing and commercializing the INTERCEPT Blood System for blood safety. The Company operates through blood safety segment. The Company’s INTERCEPT Blood System is based on its technology for controlling biological replication, and is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The Company’s INTERCEPT Blood System is designed to target and inactivate blood-borne pathogens, such as viruses, including human immunodeficiency virus (HIV), West Nile, Severe acute respiratory syndrome (SARS), hepatitis B and C; bacteria and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma and red blood cell transfusion products. The Company’s INTERCEPT Blood System is for use with blood components, including plasma, platelets, and red blood cells.

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