STERIS (NYSE:STE – Get Free Report) and Sensus Healthcare (NASDAQ:SRTS – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Risk and Volatility
STERIS has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Sensus Healthcare has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Valuation and Earnings
This table compares STERIS and Sensus Healthcare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STERIS | $5.94 billion | 3.49 | $782.30 million | $7.93 | 26.67 |
| Sensus Healthcare | $27.48 million | 1.77 | -$7.72 million | ($0.47) | -6.29 |
STERIS has higher revenue and earnings than Sensus Healthcare. Sensus Healthcare is trading at a lower price-to-earnings ratio than STERIS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares STERIS and Sensus Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STERIS | 13.18% | 14.15% | 9.52% |
| Sensus Healthcare | -34.50% | -15.79% | -14.02% |
Insider and Institutional Ownership
94.7% of STERIS shares are held by institutional investors. Comparatively, 25.3% of Sensus Healthcare shares are held by institutional investors. 1.1% of STERIS shares are held by company insiders. Comparatively, 10.2% of Sensus Healthcare shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for STERIS and Sensus Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STERIS | 0 | 1 | 3 | 0 | 2.75 |
| Sensus Healthcare | 1 | 1 | 5 | 0 | 2.57 |
STERIS currently has a consensus price target of $278.00, indicating a potential upside of 31.46%. Sensus Healthcare has a consensus price target of $6.88, indicating a potential upside of 132.74%. Given Sensus Healthcare’s higher possible upside, analysts plainly believe Sensus Healthcare is more favorable than STERIS.
Summary
STERIS beats Sensus Healthcare on 10 of the 14 factors compared between the two stocks.
About STERIS
STERIS plc provides infection prevention products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services; preventive maintenance programs and repair services; instrument and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. The Applied Sterilization Technologies segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of approximately 50 contract sterilization and laboratory facilities. The Life Sciences segment designs, manufactures and sells consumable products, such as formulated cleaning chemistries, barrier, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. This segment also offers equipment installation, maintenance, upgradation, repair, and troubleshooting services; and preventive maintenance programs and repair services. The Dental segment provides hand and electric-powered dental instruments, infection control products, conscious sedation, personal protective equipment, and water quality products for dental suite. The company serves its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers. The company was founded in 1985 and is based in Dublin, Ireland.
About Sensus Healthcare
Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.
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