Contrasting ICU Medical (ICUI) & CareFusion (CFN)

ICU Medical (NASDAQ: ICUI) and CareFusion (NYSE:CFN) are both mid-cap medical equipment, supplies & distribution – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ICU Medical and CareFusion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ICU Medical 0 2 1 0 2.33
CareFusion 0 0 0 0 N/A

Insider and Institutional Ownership

78.1% of ICU Medical shares are owned by institutional investors. 13.6% of ICU Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ICU Medical and CareFusion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ICU Medical 2.79% 4.81% 3.77%
CareFusion 16.18% 12.80% 7.62%

Earnings & Valuation

This table compares ICU Medical and CareFusion’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ICU Medical $379.37 million 12.59 $63.08 million $1.53 155.13
CareFusion N/A N/A N/A $2.35 25.51

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

Summary

ICU Medical beats CareFusion on 5 of the 9 factors compared between the two stocks.

About ICU Medical

ICU Medical, Inc. is engaged in the development, manufacture and sales of medical devices used in infusion therapy, oncology and critical care applications. The Company’s product line includes needlefree connection devices, custom infusion sets, closed system transfer devices (CSTD) for the handling of hazardous drugs, advanced sensor catheters, needlefree closed blood sampling systems, disposable pressure transducer systems and hemodynamic monitoring systems. The primary critical care products it manufactures are Hemodynamic Monitoring Systems, SafeSet Closed Blood Sampling and Conservation System, Transpac Consumable Blood Pressure Transducers and Other Critical Care Products. The primary oncology products it manufactures are ChemoLock Needlefree CSTD, ChemoClave Needlefree CSTD and Diana Hazardous Drug Compounding System. As of December 31, 2016, its products were used in acute care hospitals and ambulatory clinics in more than 65 countries throughout the world.

About CareFusion

CareFusion Corporation is a global medical technology company. The Company operates in two business segments: Medical Systems and Procedural Solutions. The Company’s primary product brands include: Alaris intravenous (IV) infusion systems; Pyxis and Rowa automated medication dispensing and supply management systems; AVEA, Vela and LTV Series respiratory ventilators; ChloraPrep skin antiseptic products; MaxGuard, MaxPlus, MaxZero, SmartSite and Texium needle-free IV infusion valves, administration sets and accessories; V. Mueller and Snowden-Pencer open surgical and laparoscopic instrumentation; PleurX, Achieve and Temno interventional specialty products; AirLife disposable ventilator circuits and oxygen masks used for providing respiratory therapy; Vital Signs single-use consumables for respiratory care and anesthesiology; Jaeger and SensorMedics cardiopulmonary diagnostic equipment, and MedMined data mining surveillance software and analytics.

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