Landauer (NYSE: LDR) and Steris Plc (NYSE:STE) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Steris Plc pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Landauer pays out 57.0% of its earnings in the form of 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. Landauer is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Landauer 12.09% 80.03% 10.11%
Steris Plc 4.63% 11.39% 6.54%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Landauer 0 1 0 0 2.00
Steris Plc 0 2 3 0 2.60

Steris Plc has a consensus price target of $87.33, suggesting a potential downside of 3.61%. Given Steris Plc’s stronger consensus rating and higher possible upside, analysts clearly believe Steris Plc is more favorable than Landauer.

Volatility and Risk

Landauer has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Steris Plc has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

79.6% of Landauer shares are owned by institutional investors. Comparatively, 93.3% of Steris Plc shares are owned by institutional investors. 6.6% of Landauer shares are owned by company insiders. Comparatively, 2.6% of Steris Plc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Landauer and Steris Plc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Landauer $153.35 million 4.22 $39.95 million $1.93 34.82
Steris Plc $2.58 billion 2.99 $521.33 million $1.40 64.71

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

Summary

Landauer beats Steris Plc on 9 of the 16 factors compared between the two stocks.

About Landauer

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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.

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