Reviewing Surmodics (NASDAQ:SRDX) and Demant A/S (OTCMKTS:WILYY)

Surmodics (NASDAQ:SRDX) and Demant A/S (OTCMKTS:WILYY) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Insider & Institutional Ownership

96.6% of Surmodics shares are held by institutional investors. 8.9% of Surmodics shares are held 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 Recommendations

This is a breakdown of current recommendations and price targets for Surmodics and Demant A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surmodics	2	2	1	0	1.80
Demant A/S	0	1	0	1	3.00

Surmodics presently has a consensus price target of $43.00, suggesting a potential upside of 0.05%. Given Surmodics’ higher possible upside, analysts plainly believe Surmodics is more favorable than Demant A/S.

Profitability

This table compares Surmodics and Demant A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surmodics	-14.59%	-2.99%	-1.99%
Demant A/S	N/A	N/A	N/A

Volatility and Risk

Surmodics has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Demant A/S has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Surmodics and Demant A/S”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surmodics	$120.80 million	5.09	-$11.54 million	($1.23)	-34.94
Demant A/S	$3.25 billion	2.16	$346.11 million	N/A	N/A

Demant A/S has higher revenue and earnings than Surmodics.

Summary

Demant A/S beats Surmodics on 7 of the 13 factors compared between the two stocks.

About Surmodics

Surmodics, Inc., together with its subsidiaries, provides performance coating technologies for intravascular medical devices, and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates through two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for neurovascular, peripheral, coronary, and structural heart, and other markets, as well as manufacturing of vascular intervention medical devices, including drug-coated balloons, mechanical thrombectomy devices, and radial access balloon catheters and guide sheaths. The IVD segment develops, manufactures, and sells chemical and biological components for in vitro diagnostic immunoassay and molecular tests, as well as diagnostic and biomedical research markets. This segment offers protein stabilizers, substrates, surface coatings, and antigens. The company was founded in 1979 and is headquartered in Eden Prairie, Minnesota.

About Demant A/S

Demant A/S operates as a hearing healthcare and audio technology company in Europe, North America, the Asia Pacific, Asia, and internationally. It operates through two segments: Hearing Healthcare and Communications. The Hearing Healthcare segment is involved in the manufacturing, servicing, and sale of hearing aids, and diagnostic products and services. The Communications segment provides headsets and solutions for the professional call centers, office markets, and gaming markets under the EPOS brand name. The company was formerly known as William Demant Holding A/S and changed its name to Demant A/S in March 2019. Demant A/S was founded in 1904 and is headquartered in Smørum, Denmark.