Steris Plc (NYSE: STE) and NeuroMetrix (NASDAQ:NURO) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for Steris Plc and NeuroMetrix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steris Plc 0 2 3 0 2.60
NeuroMetrix 0 0 2 0 3.00

Steris Plc presently has a consensus price target of $85.00, suggesting a potential downside of 5.18%. NeuroMetrix has a consensus price target of $26.00, suggesting a potential upside of 1,174.51%. Given NeuroMetrix’s stronger consensus rating and higher probable upside, analysts plainly believe NeuroMetrix is more favorable than Steris Plc.

Profitability

This table compares Steris Plc and NeuroMetrix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Steris Plc 4.63% 11.39% 6.54%
NeuroMetrix -83.92% -209.56% -135.03%

Institutional and Insider Ownership

93.3% of Steris Plc shares are held by institutional investors. Comparatively, 6.5% of NeuroMetrix shares are held by institutional investors. 2.6% of Steris Plc shares are held by insiders. Comparatively, 4.4% of NeuroMetrix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Steris Plc pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. NeuroMetrix does not pay a dividend. 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. Steris Plc has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Steris Plc and NeuroMetrix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Steris Plc $2.58 billion 2.96 $521.33 million $1.40 64.03
NeuroMetrix $15.72 million 0.24 -$13.27 million ($20.01) -0.10

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

Volatility & Risk

Steris Plc has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, NeuroMetrix has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Summary

Steris Plc beats NeuroMetrix 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 NeuroMetrix

NeuroMetrix, Inc. is a healthcare company combining bioelectrical and digital medicine to address chronic health conditions, including chronic pain, sleep disorders and diabetes. The Company is engaged in the sale of medical equipment, and consumables and accessories. It has two principal product lines: Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. Its products include ADVANCE NCS/EMG System (the ADVANCE System), Quell, SENSUS and DPNCheck. Quell is a wearable device for relief of chronic intractable pain, such as nerve pain due to diabetes and lower back problems. The SENSUS pain therapy device, the technological predecessor to Quell, is a prescription neuro-stimulation device based on transcutaneous electrical nerve stimulation (TENS) for relief of chronic, intractable pain. DPNCheck is a quantitative nerve conduction test. ADVANCE System is a platform for the performance of traditional nerve conduction studies.

Receive News & Stock Ratings for Steris Plc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Steris Plc and related stocks with our FREE daily email newsletter.