Critical Review: Sotera Health (NASDAQ:SHC) & Getinge (OTCMKTS:GNGBY)

Getinge (OTCMKTS:GNGBY) and Sotera Health (NASDAQ:SHC) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Risk & Volatility

Getinge has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Getinge and Sotera Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	0	1	1	3.50
Sotera Health	0	3	8	0	2.73

Sotera Health has a consensus target price of $20.25, indicating a potential upside of 13.45%. Given Sotera Health’s higher possible upside, analysts plainly believe Sotera Health is more favorable than Getinge.

Earnings & Valuation

This table compares Getinge and Sotera Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	1.89	$230.87 million	$1.05	23.59
Sotera Health	$1.16 billion	4.37	$77.94 million	$0.41	43.54

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

Insider and Institutional Ownership

91.0% of Sotera Health shares are owned by institutional investors. 15.4% of Sotera Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Getinge and Sotera Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getinge	7.81%	11.12%	5.88%
Sotera Health	9.91%	39.73%	7.05%

Summary

Sotera Health beats Getinge on 10 of the 15 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

About Sotera Health

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.