Stryker Corporation (NYSE: SYK) and Cerus Corporation (NASDAQ:CERS) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Stryker Corporation and Cerus Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker Corporation 2 7 11 0 2.45
Cerus Corporation 0 0 4 0 3.00

Stryker Corporation presently has a consensus price target of $145.31, suggesting a potential upside of 0.99%. Cerus Corporation has a consensus price target of $7.25, suggesting a potential upside of 175.67%. Given Cerus Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Cerus Corporation is more favorable than Stryker Corporation.

Dividends

Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.2%. Cerus Corporation does not pay a dividend. Stryker Corporation pays out 37.9% of its earnings in the form of a dividend. Cerus Corporation has raised its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Stryker Corporation and Cerus Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stryker Corporation $11.96 billion 4.50 $3.29 billion $4.48 32.12
Cerus Corporation $36.83 million 7.79 -$61.75 million ($0.61) -4.31

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

Risk & Volatility

Stryker Corporation has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Cerus Corporation has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Profitability

This table compares Stryker Corporation and Cerus Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stryker Corporation 14.22% 24.26% 11.36%
Cerus Corporation -164.39% -120.31% -65.38%

Institutional & Insider Ownership

74.2% of Stryker Corporation shares are held by institutional investors. Comparatively, 58.7% of Cerus Corporation shares are held by institutional investors. 7.4% of Stryker Corporation shares are held by company insiders. Comparatively, 7.4% of Cerus Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Stryker Corporation beats Cerus Corporation on 9 of the 15 factors compared between the two stocks.

Stryker Corporation Company Profile

Stryker Corporation is a medical technology company. The Company offers a range of medical technologies, including orthopedic, medical and surgical, and neurotechnology and spine products. The Company’s segments include Orthopaedics; MedSurg; Neurotechnology and Spine, and Corporate and Other. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products. The MedSurg segment includes surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment, intensive care disposable products; reprocessed and remanufactured medical devices, and other related products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems and other related products. The Company’s products include implants, which are used in joint replacement and trauma surgeries, and other products that are used in a range of medical specialties.

Cerus Corporation Company Profile

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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