Critical Analysis: CryoLife (CRY) and Hill-Rom Holdings (HRC)
CryoLife (NYSE: CRY) and Hill-Rom Holdings (NYSE:HRC) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
This is a breakdown of current ratings and price targets for CryoLife and Hill-Rom Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CryoLife presently has a consensus price target of $23.63, suggesting a potential upside of 13.86%. Hill-Rom Holdings has a consensus price target of $86.83, suggesting a potential upside of 9.27%. Given CryoLife’s stronger consensus rating and higher possible upside, research analysts clearly believe CryoLife is more favorable than Hill-Rom Holdings.
Hill-Rom Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. CryoLife does not pay a dividend. Hill-Rom Holdings pays out 41.6% of its earnings in the form of a dividend. CryoLife has raised its dividend for 6 consecutive years and Hill-Rom Holdings has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares CryoLife and Hill-Rom Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CryoLife||$183.16 million||3.79||$23.56 million||$0.33||62.88|
|Hill-Rom Holdings||$2.71 billion||1.93||$465.30 million||$1.73||45.94|
Hill-Rom Holdings has higher revenue and earnings than CryoLife. Hill-Rom Holdings is trading at a lower price-to-earnings ratio than CryoLife, indicating that it is currently the more affordable of the two stocks.
This table compares CryoLife and Hill-Rom Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
CryoLife has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Hill-Rom Holdings has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
68.4% of CryoLife shares are held by institutional investors. Comparatively, 82.3% of Hill-Rom Holdings shares are held by institutional investors. 6.0% of CryoLife shares are held by insiders. Comparatively, 2.2% of Hill-Rom Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Hill-Rom Holdings beats CryoLife on 9 of the 17 factors compared between the two stocks.
CryoLife Company Profile
CryoLife, Inc. (CryoLife) is a medical device manufacturer and processor, and is engaged in the distribution of medical devices and implantable human tissues used in cardiac surgical procedures. The Company operates through two segments: Medical Devices and Preservation Services. The Medical Devices segment includes medical devices, such as BioGlue Surgical Adhesive, BioFoam Surgical Matrix, On-X Life Technologies Holdings, Inc. valves and surgical products, CardioGenesis cardiac laser therapy product line, PerClot and PhotoFix. PhotoFix is a pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde. The Preservation Services segment includes external services, such as preservation of cardiac and vascular tissues. The cardiac and vascular human tissues distributed by CryoLife include the CryoValve SG pulmonary heart valve and the CryoPatch SG pulmonary cardiac patch, both of which are processed using CryoLife’s SynerGraft technology.
Hill-Rom Holdings Company Profile
Hill-Rom Holdings, Inc. is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions. The Company sells and rents its specialty frames and surfaces, and mobility solutions, as well as its clinical workflow solutions, in the United States and Canada through its North America Patient Support Systems segment, and in regions outside of the United States and Canada through its International Patient Support Systems segment. Its Front Line Care segment globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat and manage a range of illnesses and diseases. Under its Surgical Solutions segment, the Company sells its surgical products globally.
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