SurModics (NASDAQ: SRDX) and Exactech (NASDAQ:EXAC) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Institutional and Insider Ownership
84.2% of SurModics shares are held by institutional investors. Comparatively, 61.2% of Exactech shares are held by institutional investors. 7.7% of SurModics shares are held by insiders. Comparatively, 28.3% of Exactech shares are held by 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.
This table compares SurModics and Exactech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SurModics||$73.11 million||6.54||$3.92 million||N/A||N/A|
SurModics has higher earnings, but lower revenue than Exactech.
This table compares SurModics and Exactech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
SurModics has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Exactech has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
This is a breakdown of recent ratings for SurModics and Exactech, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SurModics currently has a consensus price target of $40.00, suggesting a potential upside of 10.50%. Exactech has a consensus price target of $49.00, suggesting a potential downside of 0.51%. Given SurModics’ stronger consensus rating and higher possible upside, analysts plainly believe SurModics is more favorable than Exactech.
SurModics beats Exactech on 8 of the 13 factors compared between the two stocks.
Surmodics, Inc. is a provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company operates through two segments: Medical Device and In Vitro Diagnostics. The Company’s Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device. The Company’s In Vitro Diagnostics segment manufactures or sells components for in vitro diagnostic immunoassay and molecular tests. The In Vitro Diagnostics segment manufactures and sells surface coatings to the diagnostic, biomedical research and life science markets. In Vitro Diagnostics segment offers protein stabilization reagents, substrates, antigens and surface coatings.
Exactech, Inc. develops, manufactures, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic services to hospitals and physicians. The Company’s segments include knee, hip, biologics and spine, extremity and other products. Its other products segment includes miscellaneous sales categories, such as bone cement, instrument rental fees, shipping charges and other product lines. The Company distributes joint replacement systems, including knee, hip, spine and extremity implant systems, and biologic products and services and bone cement materials used in orthopedic surgery and dental procedures. The Exactech Knee System provides solutions for partial, primary and revision total knee arthroplasty. Its hip solutions address the continuum of hip arthroplasty. It manufactures and distributes various products and services designed for the healing and regeneration of bone and soft tissue, including products, which contain human allograft.
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