Analyzing Integra LifeSciences (NASDAQ:IART) and STERIS (NYSE:STE)

Integra LifeSciences (NASDAQ:IART) and STERIS (NYSE:STE) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares Integra LifeSciences and STERIS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integra LifeSciences	-30.15%	17.42%	5.00%
STERIS	13.18%	14.15%	9.52%

Risk & Volatility

Integra LifeSciences has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, STERIS has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

84.8% of Integra LifeSciences shares are held by institutional investors. Comparatively, 94.7% of STERIS shares are held by institutional investors. 3.8% of Integra LifeSciences shares are held by insiders. Comparatively, 1.1% of STERIS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Integra LifeSciences and STERIS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integra LifeSciences	$1.64 billion	0.68	-$516.47 million	($6.46)	-2.23
STERIS	$5.94 billion	3.54	$782.30 million	$7.93	27.04

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Integra LifeSciences and STERIS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integra LifeSciences	3	3	0	0	1.50
STERIS	0	2	2	0	2.50

Integra LifeSciences presently has a consensus target price of $12.75, suggesting a potential downside of 11.34%. STERIS has a consensus target price of $275.67, suggesting a potential upside of 28.55%. Given STERIS’s stronger consensus rating and higher probable upside, analysts plainly believe STERIS is more favorable than Integra LifeSciences.

Summary

STERIS beats Integra LifeSciences on 11 of the 14 factors compared between the two stocks.

About Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.

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.