Critical Review: Smith & Nephew SNATS (NYSE:SNN) versus OraSure Technologies (NASDAQ:OSUR)

Smith & Nephew SNATS (NYSE:SNN) and OraSure Technologies (NASDAQ:OSUR) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Smith & Nephew SNATS and OraSure Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith & Nephew SNATS	N/A	N/A	N/A
OraSure Technologies	-47.92%	-13.61%	-11.68%

Institutional and Insider Ownership

25.6% of Smith & Nephew SNATS shares are owned by institutional investors. Comparatively, 93.5% of OraSure Technologies shares are owned by institutional investors. 1.0% of Smith & Nephew SNATS shares are owned by insiders. Comparatively, 3.9% of OraSure Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Smith & Nephew SNATS has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, OraSure Technologies has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Smith & Nephew SNATS and OraSure Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Nephew SNATS	0	5	0	1	2.33
OraSure Technologies	1	2	0	0	1.67

Smith & Nephew SNATS presently has a consensus target price of $35.75, suggesting a potential downside of 0.53%. OraSure Technologies has a consensus target price of $3.00, suggesting a potential upside of 6.38%. Given OraSure Technologies’ higher possible upside, analysts plainly believe OraSure Technologies is more favorable than Smith & Nephew SNATS.

Earnings & Valuation

This table compares Smith & Nephew SNATS and OraSure Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Nephew SNATS	$5.81 billion	2.63	$412.00 million	N/A	N/A
OraSure Technologies	$185.83 million	1.09	-$19.50 million	($0.80)	-3.53

Smith & Nephew SNATS has higher revenue and earnings than OraSure Technologies.

Summary

Smith & Nephew SNATS beats OraSure Technologies on 8 of the 12 factors compared between the two stocks.

About Smith & Nephew SNATS

Smith & Nephew plc engages in the development, manufacture, marketing, and sale of medical devices. It operates through the following segments: Orthopaedics, Sports Medicine and ENT, and Advanced Wound Management. The Orthopaedics and Sports Medicine and ENT segment consists of the following businesses: knee implants, hip implants, other reconstruction, trauma, sports medicine joint repair, arthroscopic enabling technologies, and ENT. The Advanced Wound Management segment includes advanced wound care, advanced wound bioactives, and advanced wound devices businesses. The company was founded in 1856 and is headquartered in Watford, the United Kingdom.

About OraSure Technologies

OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.