ICU Medical (NASDAQ: ICUI) and Steris (NYSE:STE) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Steris pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. ICU Medical does not pay a dividend. Steris pays out 73.8% of its earnings in the form of a dividend. ICU Medical has raised its dividend for 8 consecutive years.
This table compares ICU Medical and Steris’ gross 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||$1.54||154.12|
|Steris||$2.61 billion||2.99||$109.96 million||$1.68||54.74|
Steris has higher revenue and earnings than ICU Medical. Steris is trading at a lower price-to-earnings ratio than ICU Medical, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for ICU Medical and Steris, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Steris has a consensus target price of $72.33, suggesting a potential downside of 21.34%. Given Steris’ stronger consensus rating and higher probable upside, analysts clearly believe Steris is more favorable than ICU Medical.
Institutional & Insider Ownership
78.1% of ICU Medical shares are held by institutional investors. Comparatively, 89.4% of Steris shares are held by institutional investors. 13.6% of ICU Medical shares are held by insiders. Comparatively, 2.6% of Steris shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares ICU Medical and Steris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
ICU Medical has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Steris has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Steris beats ICU Medical on 12 of the 17 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.
STERIS plc provides infection prevention and other procedural products and services. The Company operates through four segments: Healthcare Products, which offers infection prevention and procedural solutions for healthcare providers, including capital equipment and related maintenance, and installation services, as well as consumables; Healthcare Specialty Services, which provides a range of specialty services for healthcare providers, including hospital sterilization services, instrument and scope repairs, and linen management; Life Sciences, which offers capital equipment and consumable products, and equipment maintenance and specialty services for pharmaceutical manufacturers and research facilities, and Applied Sterilization Technologies, which offers contract sterilization and laboratory services for medical device and pharmaceutical customers and others. Its Corporate and other segment includes the Defense and Industrial business unit.
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