SurModics (NASDAQ:SRDX) and STRATA Skin Sciences (NASDAQ:SSKN) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
84.9% of SurModics shares are owned by institutional investors. Comparatively, 27.5% of STRATA Skin Sciences shares are owned by institutional investors. 7.7% of SurModics shares are owned by company insiders. Comparatively, 10.0% of STRATA Skin Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
SurModics has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, STRATA Skin Sciences has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for SurModics and STRATA Skin Sciences, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|STRATA Skin Sciences||0||0||2||0||3.00|
SurModics currently has a consensus target price of $80.33, indicating a potential upside of 22.61%. STRATA Skin Sciences has a consensus target price of $5.00, indicating a potential upside of 82.40%. Given STRATA Skin Sciences’ higher probable upside, analysts plainly believe STRATA Skin Sciences is more favorable than SurModics.
Valuation and Earnings
This table compares SurModics and STRATA Skin Sciences’ 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||11.96||$3.92 million||$0.51||128.47|
|STRATA Skin Sciences||$31.45 million||2.61||-$18.83 million||$1.97||1.39|
SurModics has higher revenue and earnings than STRATA Skin Sciences. STRATA Skin Sciences is trading at a lower price-to-earnings ratio than SurModics, indicating that it is currently the more affordable of the two stocks.
This table compares SurModics and STRATA Skin Sciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|STRATA Skin Sciences||-63.07%||-27.01%||-16.66%|
SurModics beats STRATA Skin Sciences on 10 of the 13 factors compared between the two stocks.
SurModics Company Profile
Surmodics, Inc., together with its subsidiaries, provides medical devices and in vitro diagnostic technologies to the healthcare industry in the United States and Ireland. It operates through two segments, Medical Device and In Vitro Diagnostics. The Medical Device segment offers surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device for the coronary, peripheral, neuro-vascular, urology, and other markets. The Vitro Diagnostics segment provides stabilization products, substrates, antigens, and surface coatings to diagnostics customers; and manufactures or sells components for in vitro diagnostic immunoassay and molecular tests, as well as surface coatings to the diagnostic, biomedical research, and life science markets. SurModics, Inc. was founded in 1979 and is headquartered in Eden Prairie, Minnesota.
STRATA Skin Sciences Company Profile
STRATA Skin Sciences, Inc., a medical technology company, focuses on the therapeutic and aesthetic dermatology market. The company operates through three segments: Dermatology Recurring Procedures, Dermatology Procedures Equipment, and Dermatology Imaging. Its products include XTRAC laser and VTRAC excimer lamp systems used for the treatment of psoriasis, vitiligo, and other skin conditions; the STRATAPEN MicroSystems, a micropigmentation device; and Nordlys, a multi-technology aesthetic laser device for treating vascular and pigmented lesions. STRATA Skin Sciences, Inc. was founded in 1989 and is based in Horsham, Pennsylvania.
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