Smith & Nephew SNATS (NYSE: SNN) and HeartWare International (NASDAQ:HTWR) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Smith & Nephew SNATS and HeartWare International’s 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
HeartWare International -15.84% -25.32% -10.14%

Valuation and Earnings

This table compares Smith & Nephew SNATS and HeartWare International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Smith & Nephew SNATS $4.68 billion 3.41 $1.32 billion N/A N/A
HeartWare International N/A N/A N/A ($3.40) -17.05

Smith & Nephew SNATS has higher revenue and earnings than HeartWare International.

Analyst Ratings

This is a summary of recent recommendations and price targets for Smith & Nephew SNATS and HeartWare International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smith & Nephew SNATS 0 4 2 0 2.33
HeartWare International 0 0 0 0 N/A

Risk & Volatility

Smith & Nephew SNATS has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, HeartWare International has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Dividends

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

Institutional and Insider Ownership

6.4% of Smith & Nephew SNATS shares are owned by institutional investors. 1.0% of Smith & Nephew SNATS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Smith & Nephew SNATS beats HeartWare International on 9 of the 10 factors compared between the two stocks.

Smith & Nephew SNATS Company Profile

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.

HeartWare International Company Profile

Heartware International, Inc. is a medical device company. The Company develops and manufactures miniaturized implantable heart pumps or ventricular assist devices to treat patients suffering from advanced heart failure. The Company operates in the segment of design and manufacture of medical devices. The HeartWare Ventricular Assist System (HVAD System), which includes a ventricular assist device (VAD) or blood pump, patient accessories and surgical tools, provides circulatory support for patients in the advanced stage of heart failure. The HVAD System is designed to be implanted adjacent to the heart, avoiding abdominal surgery. The HVAD System features the centrifugal pump designed to be implanted in the chest, directly adjacent to the heart. It develops MVAD System, a miniaturized device. The CircuLite Surgical System is designed to be implanted through a right, mini-thoracotomy procedure and does not require a sternotomy or cardiopulmonary bypass.

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