MiMedx Group (NASDAQ: MDXG) and Steris (NYSE:STE) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Insider & Institutional Ownership
80.3% of MiMedx Group shares are held by institutional investors. Comparatively, 89.4% of Steris shares are held by institutional investors. 12.4% of MiMedx Group shares are held by company insiders. Comparatively, 2.6% of Steris shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for MiMedx Group and Steris, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MiMedx Group presently has a consensus target price of $14.75, suggesting a potential upside of 102.89%. Steris has a consensus target price of $80.25, suggesting a potential downside of 15.45%. Given MiMedx Group’s higher probable upside, analysts clearly believe MiMedx Group is more favorable than Steris.
Steris pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. MiMedx Group does not pay a dividend. Steris pays out 43.5% of its earnings in the form of a dividend. Steris has increased its dividend for 8 consecutive years.
Volatility and Risk
MiMedx Group has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Steris has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
Earnings & Valuation
This table compares MiMedx Group and Steris’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MiMedx Group||$245.01 million||3.29||$11.97 million||$0.30||24.23|
|Steris||$2.61 billion||3.08||$109.96 million||$2.85||33.30|
Steris has higher revenue and earnings than MiMedx Group. MiMedx Group is trading at a lower price-to-earnings ratio than Steris, indicating that it is currently the more affordable of the two stocks.
This table compares MiMedx Group and Steris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Steris beats MiMedx Group on 9 of the 17 factors compared between the two stocks.
About MiMedx Group
MiMedx Group, Inc. is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants human placental tissue, skin and bone. The Company’s Regenerative Biomaterials segment includes the design, manufacture, and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories. Its biomaterial platform technologies include AmnioFix, EpiFix, OrthoFlo, Physio, AlloBurn, and CollaFix. AmnioFix and EpiFix are its tissue technologies processed from human amniotic membrane derived from donated placentas. OrthoFlo is amniotic fluid-derived allograft for homologous use. Physio is a bone grafting material consists of bone tissue with no added carrier. CollaFix, its new brand, is its collagen fiber technology designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair.
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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