XWELL (NASDAQ:XWEL) versus Sotera Health (NASDAQ:SHC) Financial Comparison

XWELL (NASDAQ:XWEL) and Sotera Health (NASDAQ:SHC) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

8.7% of XWELL shares are owned by institutional investors. Comparatively, 91.0% of Sotera Health shares are owned by institutional investors. 13.9% of XWELL shares are owned by insiders. Comparatively, 47.6% of Sotera Health shares are owned by 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.

Analyst Ratings

This is a breakdown of recent ratings for XWELL and Sotera Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XWELL	1	0	0	0	1.00
Sotera Health	0	3	4	0	2.57

Sotera Health has a consensus price target of $17.80, suggesting a potential upside of 0.56%. Given Sotera Health’s stronger consensus rating and higher possible upside, analysts plainly believe Sotera Health is more favorable than XWELL.

Earnings and Valuation

This table compares XWELL and Sotera Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XWELL	$33.90 million	0.11	-$16.85 million	($3.37)	-0.19
Sotera Health	$1.10 billion	4.57	$44.34 million	$0.19	93.16

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

Volatility and Risk

XWELL has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Profitability

This table compares XWELL and Sotera Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XWELL	-51.85%	-352.37%	-64.88%
Sotera Health	4.82%	43.69%	6.54%

Summary

Sotera Health beats XWELL on 14 of the 14 factors compared between the two stocks.

About XWELL

XWELL, Inc. provides health and wellness services in airport and off airport marketplaces in the United States and internationally. It operates in four segments: XpresSpa, XpresTest, Naples Wax Center, and Treat. The XpresSpa segment traveler's spa services, including massage, nail, and skin care services, as well as spa and travel products. The XpresTest segment offers diagnostic COVID-19 tests at XpresCheck Wellness Centers in airports, to airport employees and to the traveling public but has transitioned to the CDC's bio-surveillance program; and provides marketing support through HyperPointe business to various health and health-related channels. The Napple Wax Center segment offers skincare and cometic products, as well as face and body waxing services. The Treat segment provides access to wellness services for travelers at on-site centers, consisting of self-guided yoga, meditation, and low impact weight exercises programs. The company offers its services through stores, kiosks, and online. The company was formerly known as XpresSpa Group, Inc. and changed its name to XWELL, Inc. in October 2022. XWELL, Inc. is based in New York, New York.

About Sotera Health

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.