Steris Plc (STE) vs. Invacare Corporation (IVC) Critical Analysis
Steris Plc (NYSE: STE) and Invacare Corporation (NYSE:IVC) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
Steris Plc has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Invacare Corporation has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.
Steris Plc pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Steris Plc pays out 88.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend. Steris Plc has increased its dividend for 7 consecutive years. Steris Plc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Steris Plc and Invacare Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Steris Plc||$2.58 billion||2.92||$521.33 million||$1.40||63.14|
|Invacare Corporation||$980.12 million||0.53||-$13.64 million||($1.93)||-8.16|
Steris Plc has higher revenue and earnings than Invacare Corporation. Invacare Corporation is trading at a lower price-to-earnings ratio than Steris Plc, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.3% of Steris Plc shares are held by institutional investors. 2.6% of Steris Plc shares are held by company insiders. Comparatively, 2.6% of Invacare Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Steris Plc and Invacare Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Steris Plc and Invacare Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Steris Plc presently has a consensus price target of $85.00, indicating a potential downside of 3.85%. Invacare Corporation has a consensus price target of $14.50, indicating a potential downside of 7.94%. Given Steris Plc’s higher probable upside, analysts clearly believe Steris Plc is more favorable than Invacare Corporation.
Steris Plc beats Invacare Corporation on 12 of the 16 factors compared between the two stocks.
About Steris Plc
STERIS plc provides infection prevention and other procedural products and services. The Company operates through four segments: Healthcare Products, which offers infection prevention and procedural solutions for healthcare providers, including capital equipment and related maintenance, and installation services, as well as consumables; Healthcare Specialty Services, which provides a range of specialty services for healthcare providers, including hospital sterilization services, instrument and scope repairs, and linen management; Life Sciences, which offers capital equipment and consumable products, and equipment maintenance and specialty services for pharmaceutical manufacturers and research facilities, and Applied Sterilization Technologies, which offers contract sterilization and laboratory services for medical device and pharmaceutical customers and others. Its Corporate and other segment includes the Defense and Industrial business unit.
About Invacare Corporation
Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.
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