Surmodics (SRDX) versus H. B. Fuller Company (NYSE:FUL) Financial Analysis
Surmodics (NASDAQ: SRDX) and H. B. Fuller Company (NYSE:FUL) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitabiliy, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
86.5% of Surmodics shares are held by institutional investors. Comparatively, 93.5% of H. B. Fuller Company shares are held by institutional investors. 6.4% of Surmodics shares are held by insiders. Comparatively, 3.1% of H. B. Fuller Company 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.
This is a summary of recent recommendations and price targets for Surmodics and H. B. Fuller Company, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|H. B. Fuller Company||0||3||1||0||2.25|
Surmodics presently has a consensus target price of $36.50, suggesting a potential upside of 32.49%. H. B. Fuller Company has a consensus target price of $51.50, suggesting a potential upside of 0.14%. Given Surmodics’ stronger consensus rating and higher possible upside, research analysts clearly believe Surmodics is more favorable than H. B. Fuller Company.
H. B. Fuller Company pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Surmodics does not pay a dividend. H. B. Fuller Company pays out 27.4% of its earnings in the form of a dividend. Surmodics has raised its dividend for 47 consecutive years.
Valuation and Earnings
This table compares Surmodics and H. B. Fuller Company’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Surmodics||$73.39 million||4.98||$21.68 million||$0.71||38.80|
|H. B. Fuller Company||$2.15 billion||1.21||$266.21 million||$2.19||23.48|
H. B. Fuller Company has higher revenue and earnings than Surmodics. H. B. Fuller Company is trading at a lower price-to-earnings ratio than Surmodics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Surmodics has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, H. B. Fuller Company has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
This table compares Surmodics and H. B. Fuller Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|H. B. Fuller Company||5.23%||13.32%||6.01%|
Surmodics beats H. B. Fuller Company on 10 of the 17 factors compared between the two stocks.
Surmodics Company Profile
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.
H. B. Fuller Company Company Profile
H.B. Fuller Company is a formulator, manufacturer and marketer of adhesives, sealants and other specialty chemical products. The Company’s segments include Americas Adhesives, Europe, India, Middle East and Africa (EIMEA), Asia Pacific, Construction Products and Engineering Adhesives. The Americas Adhesives, EIMEA and Asia Pacific operating segments produce and supply industrial adhesives products for applications in various markets, including durable assembly, nonwoven and hygiene, and textile. The Construction Products operating segment includes products used for tile setting and heating, ventilation and air conditioning and insulation applications. The Engineering Adhesives operating segment produces and supplies industrial adhesives to the transportation, appliance and heavy machinery markets, among others. As of December 3, 2016, its sales operations spanned 38 countries in North America, Europe, Latin America, the Asia Pacific region, India, the Middle East and Africa.
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