Surmodics (NASDAQ: SRDX) is one of 78 publicly-traded companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare Surmodics to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

84.8% of Surmodics shares are held by institutional investors. Comparatively, 65.5% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 6.4% of Surmodics shares are held by insiders. Comparatively, 11.9% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Surmodics and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Surmodics 5.37% 6.18% 5.11%
Surmodics Competitors -108.48% -37.51% -8.95%

Earnings and Valuation

This table compares Surmodics and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Surmodics $73.11 million $3.92 million 112.25
Surmodics Competitors $975.11 million $120.37 million 276.43

Surmodics’ competitors have higher revenue and earnings than Surmodics. Surmodics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Surmodics and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Surmodics 0 0 2 0 3.00
Surmodics Competitors 208 1239 2678 95 2.63

Surmodics presently has a consensus target price of $40.00, suggesting a potential upside of 22.89%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 5.54%. Given Surmodics’ stronger consensus rating and higher possible upside, analysts clearly believe Surmodics is more favorable than its competitors.

Volatility & Risk

Surmodics has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Surmodics’ competitors have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.

Summary

Surmodics beats its competitors on 7 of the 13 factors compared.

About Surmodics

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.

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