SurModics (NASDAQ: SRDX) and Bio-Rad Laboratories (NYSE:BIO) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation and Earnings

This table compares SurModics and Bio-Rad Laboratories’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SurModics $73.11 million 5.03 $3.92 million $0.29 96.04
Bio-Rad Laboratories $2.07 billion 3.59 $28.12 million $0.80 312.25

Bio-Rad Laboratories has higher revenue and earnings than SurModics. SurModics is trading at a lower price-to-earnings ratio than Bio-Rad Laboratories, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

85.6% of SurModics shares are owned by institutional investors. Comparatively, 63.9% of Bio-Rad Laboratories shares are owned by institutional investors. 7.7% of SurModics shares are owned by company insiders. Comparatively, 28.3% of Bio-Rad Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SurModics and Bio-Rad Laboratories, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SurModics 0 0 2 0 3.00
Bio-Rad Laboratories 0 0 3 0 3.00

SurModics presently has a consensus target price of $40.00, indicating a potential upside of 43.63%. Bio-Rad Laboratories has a consensus target price of $273.33, indicating a potential upside of 9.42%. Given SurModics’ higher probable upside, equities analysts plainly believe SurModics is more favorable than Bio-Rad Laboratories.

Volatility and Risk

SurModics has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Bio-Rad Laboratories has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares SurModics and Bio-Rad Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SurModics 5.37% 6.18% 5.11%
Bio-Rad Laboratories 1.15% 3.44% 2.34%

Summary

Bio-Rad Laboratories beats SurModics on 7 of the 13 factors compared between the two stocks.

SurModics Company Profile

Surmodics, Inc. is a provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company operates through two segments: Medical Device and In Vitro Diagnostics. The Company’s Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device. The Company’s In Vitro Diagnostics segment manufactures or sells components for in vitro diagnostic immunoassay and molecular tests. The In Vitro Diagnostics segment manufactures and sells surface coatings to the diagnostic, biomedical research and life science markets. In Vitro Diagnostics segment offers protein stabilization reagents, substrates, antigens and surface coatings.

Bio-Rad Laboratories Company Profile

Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.

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