Sotera Health (NASDAQ:SHC – Get Free Report) and Pediatrix Medical Group (NYSE:MD – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares Sotera Health and Pediatrix Medical Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sotera Health | $1.16 billion | 3.98 | $77.94 million | $0.41 | 39.59 |
| Pediatrix Medical Group | $1.91 billion | 1.04 | $165.39 million | $2.06 | 11.81 |
Profitability
This table compares Sotera Health and Pediatrix Medical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sotera Health | 9.91% | 39.73% | 7.05% |
| Pediatrix Medical Group | 9.02% | 19.94% | 8.02% |
Risk & Volatility
Sotera Health has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Pediatrix Medical Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Sotera Health and Pediatrix Medical Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sotera Health | 0 | 3 | 8 | 0 | 2.73 |
| Pediatrix Medical Group | 0 | 5 | 1 | 0 | 2.17 |
Sotera Health presently has a consensus target price of $20.29, indicating a potential upside of 24.99%. Pediatrix Medical Group has a consensus target price of $22.50, indicating a potential downside of 7.53%. Given Sotera Health’s stronger consensus rating and higher probable upside, research analysts clearly believe Sotera Health is more favorable than Pediatrix Medical Group.
Institutional & Insider Ownership
91.0% of Sotera Health shares are held by institutional investors. Comparatively, 97.7% of Pediatrix Medical Group shares are held by institutional investors. 15.4% of Sotera Health shares are held by company insiders. Comparatively, 1.8% of Pediatrix Medical Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Sotera Health beats Pediatrix Medical Group on 9 of the 14 factors compared between the two stocks.
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.
About Pediatrix Medical Group
Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.
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