Stericycle (NASDAQ: SRCL) and Sharps Compliance Corp (NASDAQ:SMED) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Stericycle and Sharps Compliance Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stericycle 3 5 6 0 2.21
Sharps Compliance Corp 0 0 2 0 3.00

Stericycle presently has a consensus price target of $80.83, indicating a potential upside of 15.05%. Sharps Compliance Corp has a consensus price target of $7.50, indicating a potential upside of 55.93%. Given Sharps Compliance Corp’s stronger consensus rating and higher possible upside, analysts plainly believe Sharps Compliance Corp is more favorable than Stericycle.

Insider and Institutional Ownership

93.7% of Stericycle shares are owned by institutional investors. Comparatively, 25.0% of Sharps Compliance Corp shares are owned by institutional investors. 3.3% of Stericycle shares are owned by company insiders. Comparatively, 20.3% of Sharps Compliance Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Stericycle and Sharps Compliance Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stericycle -0.07% 14.35% 5.79%
Sharps Compliance Corp -3.39% -2.36% -1.68%

Risk & Volatility

Stericycle has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Sharps Compliance Corp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares Stericycle and Sharps Compliance Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stericycle $3.61 billion 1.66 $777.58 million ($0.26) -270.23
Sharps Compliance Corp $38.19 million 2.02 $1.00 million ($0.07) -68.70

Stericycle has higher revenue and earnings than Sharps Compliance Corp. Stericycle is trading at a lower price-to-earnings ratio than Sharps Compliance Corp, indicating that it is currently the more affordable of the two stocks.

Summary

Stericycle beats Sharps Compliance Corp on 7 of the 13 factors compared between the two stocks.

About Stericycle

Stericycle, Inc. is a business-to-business services provider. The Company focuses on regulated and compliance solutions for healthcare, retail, and commercial businesses. The Company’s segments include Domestic and Canada Regulated Waste and Compliance Services (RCS), Domestic Communication and Related Services (CRS), International RCS and All other. The Domestic and Canada RCS and International RCS segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through its Steri-Safe and Clinical Services programs, and other regulatory compliance services. The Domestic CRS segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns and quality audits.

About Sharps Compliance Corp

Sharps Compliance Corp. is a provider of waste management services, including medical, pharmaceutical and hazardous. The Company’s solutions include Sharps Recovery System, TakeAway Medication Recovery System, MedSafe, Route-Based Pickup Service, TakeAway Recycle System, ComplianceTRAC, Universal Waste Shipback Systems and Other Solutions. The Company’s solutions facilitate the collection, containment, transportation and treatment of various types of healthcare-related materials, including hypodermic needles, lancets and other devices or objects used to puncture or lacerate the skin, or sharps, hazardous waste and unused consumer dispensed medications and over-the-counter drugs. It assists its customers in determining which of its solution offerings fit for the collection, containment, return transportation and treatment of medical waste, used healthcare materials, pharmaceutical waste, hazardous waste and unused dispensed medications. It provides tracking and reporting tools.

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