Head-To-Head Survey: STERIS (STE) and Its Rivals

STERIS (NYSE:STE) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its peers? We will compare STERIS to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares STERIS and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STERIS	13.34%	14.34%	9.66%
STERIS Competitors	-278.23%	-150.06%	-21.87%

Dividends

STERIS pays an annual dividend of $2.76 per share and has a dividend yield of 1.2%. STERIS pays out 33.7% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.2% and pay out 46.5% of their earnings in the form of a dividend. STERIS has increased its dividend for 20 consecutive years.

Earnings and Valuation

This table compares STERIS and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
STERIS	$5.94 billion	$782.30 million	28.08
STERIS Competitors	$1.89 billion	$138.79 million	10.83

STERIS has higher revenue and earnings than its peers. STERIS is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

STERIS has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, STERIS’s peers have a beta of 2.57, suggesting that their average share price is 157% more volatile than the S&P 500.

Institutional and Insider Ownership

94.7% of STERIS shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 1.1% of STERIS shares are owned by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for STERIS and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STERIS	0	1	3	0	2.75
STERIS Competitors	4257	10483	18210	824	2.46

STERIS currently has a consensus target price of $271.33, suggesting a potential upside of 18.11%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 23.87%. Given STERIS’s peers higher possible upside, analysts plainly believe STERIS has less favorable growth aspects than its peers.

Summary

STERIS beats its peers on 10 of the 15 factors compared.

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.